Stone passage reportedly found in Europe (7,4)
I believe the answer is:
emerald isle
'found in europe' is the definition.
(poetic name for Ireland)
'stone passage reportedly' is the wordplay.
'stone' becomes 'emerald' (I've seen this before**).
'passage' becomes 'aisle' (aisle is a kind of passage).
'reportedly' indicates a 'sounds like' (homophone) clue.
'aisle' is a homophone of 'isle'.
'emerald'+'isle'='EMERALD ISLE'
(Other definitions for emerald isle that I've seen before include "Name for Ireland" , "jewel of a place" , "divided country" , "where one might get whiskey" .)