What is the latest official firmware for Samsung Galaxy Europa? I am currently on 2.2 Froyo at the moment. Can I update it using Samsung Kies, or do I need to update from somewhere else?
No, you are currently running the latest version of Android for your device without flashing a custom ROM.
If you are interested in flashing a custom ROM a port of CyanogenMod 10.1 (Android version 4.2.1 Jelly Bean) has been made for your device, all information and installation guide can be found here.