Standard used by many European states (9)
I believe the answer is:
tricolour
'standard' is the definition.
(I know that tricolour is a type of standard)
I cannot understand how the remainder of the clue works.
Can you help me to learn more?
(Other definitions for tricolour that I've seen before include "Standard of French perhaps" , "French national flag" , "Having or involving three colours" .)