Earlier quoted context omitted.
In this context, "European" means "white." Jesus probably did not look like the bearded white hippie commonly depicted in Western (primarily American and British) iconography. Spaniards, Egyptians, Greeks and Levantines may or may not look similar (seems a bit broad, like the geographical definition of "European") but they also don't often look like "white people." Especially not in Egypt or the Levant.
As an European, I find the definition of European that excludes Spaniards super weird. Likewise, not counting Spaniards into white is weird too, but at least it does not betray complete lack of knowledge about what counts as Europe.
Of course the true absurdity of all this comes when two people from the same parents end up with different physiognomical and racial labels; since these traits are rarely as simple as idealized Mendelian characteristics, it is entirely possible for them to be passed on a couple of generations before re-coalescing. (The case of Summer on The Sopranos comes to mind—while her parents both have fairer skin than she does, the result is otherwise not all that unrealistic.)