Clip the raster to the area of interest with gdal_translate, e.g.:
gdal_translate -projwin ulx uly lrx lry Europe_input.tif Europe_subregion.tif
where ulx uly lrx lry
is the upper/lower x/y bounds of the area of interest in the units of Europe_input.tif
(maybe metres, maybe arcseconds, maybe degrees, I can't tell). After clipping the raster, then process Europe_subregion.tif
with gdal_contour
using the commands in your question.