The litteral translation is "Jag vill leva i Europa", but your translation is not wrong. You can translate live as both "leva" and "bo" in this sentence, but "bo" is the prefered verb in this context (refering to a place where you want to live). Saying "jag vill leva i Europa" might sound lyrical or poetic in normal conversation.
When not refering to a place "leva" would be more accurate, e.g.: "Han vill leva ensam"- He wants to live alone
Thank you for the link. I have to say that I found the way Mr. Hammarlund pronounces Swedish really easy to understand! I like Kent (pretty much the only Swedish band I know that sings in Swedish) and I have to read the lyrics while I listen to them to make some sense about what is going on!
I met Jan Hammarlund a couple of years ago in Spain. He was there for a commemoration to the International Brigades and to sing some songs from the Spanish Civil War. Ofcourse he also did a version of the song you posted. It brought back good memories, Jan is one of the kindest and most friendly people I´ve ever met..!