Panic country (5)
I believe the answer is:
state
This clue is a double definition.
'panic' is the first definition.
(I've seen this in other clues)
'country' is the second definition.
('state' can be a synonym of 'country')
(Other definitions for state that I've seen before include "Declare; affirm" , "Express; pomp" , "whole people" , "Claim" , "eg Alaska" .)