Rubbish displayed by European art gallery (4)
I believe the answer is:
tate
'art gallery' is the definition.
(I've seen this before)
'rubbish displayed by european' is the wordplay.
'rubbish' becomes 'tat' (I've seen this before**).
'displayed by' means one lot of letters go next to another.
'european' becomes 'e' (abbreviation e.g. EU).
'tat'+'e'='TATE'
(Other definitions for tate that I've seen before include "One of four art galleries in England" , "Either of two galleries in London" , "Sugar merchant and art gallery philanthropist, founder, d. 1899" , "Britain/Modern gallery" , "art patron" .)