A high-resolution 4d photoelectron spectrum of Eu has been measured. The spectrum reveals a rich structure reflecting multiplet splitting due to 4d-4f, 4f-4f, and spin-orbit interaction. In order to interpret the complex 4d-1 multiplet structure, calculations in the intermediate coupling scheme were performed taking into account the term-dependent lifetime width of each 4d-1 multiplet state. The strong influence of both the 4d-4f exchange interaction and the term-dependent lifetime broadening on the shape of the 4d photoelectron spectrum is demonstrated. Due to the inner-shell character of the 4d and 4f orbitals, the spectrum of atomic Eu is similar to that of Eu and Gd solid samples having the same 4f7 occupancy.