See Margherita perhaps when spending afternoon in this square (6)

I believe the answer is:

piazza

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'this square' is the definition.
(synonyms)

I don't understand how the remainder of the clue works.

(Other definitions for piazza that I've seen before include "Public square in Italian town" , "3 down" , "Where Italians may gather" .)

I've seen this clue in The Sunday Times and The Times.

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