Second class liner built in European city (6)

I believe the answer is:

berlin

I'm a little stuck... Click here to teach me more about this clue!

'european city' is the definition.
'berlin' can be an answer for 'city' (Berlin is an example). I am not certain of the 'european' bit.

'second class liner built in' is the wordplay.
'second class' becomes 'b' (**).
'built' indicates an anagram.
'in' indicates putting letters inside.
'liner' with letters rearranged gives 'erlin'.
'b' put within 'erlin' is 'BERLIN'.

Can you help me to learn more?

(Other definitions for berlin that I've seen before include "City once divided by wall" , "Isaiah, say?" , "German capital" , "Irving . . . . . . , great American song-writer" , "German city" .)

I've seen this clue in the Irish Times.

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