Celebrity on beach removes clothes holding European flag (5,3,7)
I believe the answer is:
stars and stripes
'european flag' is the definition.
'Stars and Stripes' can be an answer for 'flag' (Stars and Stripes is an example). I'm not sure about the 'european' bit.
'celebrity on beach removes clothes' is the wordplay.
'celebrity' becomes 'star' (a star is a celebrity or famous person).
'on' is a charade indicator (letters next to each other) (in a down clue, letters appear on others).
'beach' becomes 'sand'.
'removes clothes' becomes 'stripes' (I am not sure about this - if you are sure you should believe this answer much more).
'star'+'sand'+'stripes'='STARS AND STRIPES'
'holding' acts as a link.
Can you help me to learn more?
(Other definitions for stars and stripes that I've seen before include "American flier" , "Standard" , "indicators of military rank" , "indications of rank" , "The US flag" .)