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The 日 refers to "Japan" (It's the 日 of 日本). So, you have Japan and Europe, which makes this Japan and Europe or Japanese-European.
日欧 is a fairly formal word commonly found in newspapers or official reports, where it’s often used for brevity when referring to Japan and Europe together, like in 日欧関係 (Japanese-European relations).
This is a jukugo word, which usually means on'yomi readings from the kanji. If you know the readings of your kanji you'll know how to read this as well.
水野さんは仕事で日欧を行き来することが多い。
Mizuno-san goes back and forth from Japan to Europe a lot for her work.
日欧間の時差があるので、会議の時間を調整するのが大変です。
Since there's a time difference between Japan and Europe, it's hard to coordinate meetings.
来月、日欧文化交流フェスティバルが開催されます。
The Japan-Europe cultural exchange festival will be held next month.
日欧貿易に関する会議は、司会者の不在によって横道に逸れてしまった。
The meeting concerning trade between Europe and Japan was sidetracked due to the moderator’s absence.
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