Project with European material (4)
I believe the answer is:
jute
'material' is the definition.
(jute is a kind of material)
'project with european' is the wordplay.
'project' becomes 'jut' (I've seen this before).
'with' means one lot of letters go next to another.
'european' becomes 'e' (abbreviation e.g. EU).
'jut'+'e'='JUTE'
(Other definitions for jute that I've seen before include "Companion for Anglo-Saxon" , "Germanic invader of Britain - type of fibre" , "Plant - member of a Germanic tribe - fibre" , "Fibre used for ropes and sacks" , "Fibre-producing plant" .)