Yes. Yes it is.
Europe properly means the continent so it is far more like saying "North America puts man on moon" than saying "America puts man on moon".
Ambiguity is always bad.
Some people say its clear, but I am sure a lot of others thought an EU agency reconnected with a spacecraft.
Its interesting that people get so upset about asking for correct and unambiguous language.
Except, you know, the only “other” meaning of “America” is just literally the alternative name for Americas, both continents. Here is an obscure link to the description [0]. Even if you want to refer to North America, what about Mexico and Canada?
The less you know, the less ambiguous it is.
"'Miracle': European Space Agency reconnects with lost spacecraft" is long.
"'Miracle': ESA reconnects with lost spacecraft" is opaque.
The first four words of the article are, "The European Space Agency..."
The expansion isn't really needed when it's a "household name" in the field. If you read a title about space industry there's no need to expand or explain NASA, ESA, Roscosmos, maybe not even for ISRO or JAXA, although I can see how some of these wouldn't be the most familiar for people in the West even when they have some interest in space news.