Republic created by free Romanians (3,6)
I believe the answer is:
san marino
'republic' is the definition.
(San Marino is a European country)
'free romanians' is the wordplay.
'free' is an anagram indicator.
'romanians' is an anagram of 'SAN MARINO'.
'created by' is the link.
(Other definitions for san marino that I've seen before include "Small independent republic in NE Italy" , "Independent republic, enclave of Italy near Rimini" , "Small European republic" , "European microstate" , "Small European state" .)