That CPU is probably going to drag the system down a bit by it's lack of L3 cache, but your budget will only allow you to change one component, and that should probably be your graphics card.
It's sad to see that you won't trust Radeon anymore as they do make great cards these days but I totally understand that. I have also been frustrated by other companies in the past... I guess it's one of the reasons why I will never build another system without a Corsair power supply
Anyway, given how you're an Nvidia guy, how would that look to you ?
http://www.newegg.com/Product/Product.aspx?Item=N82E16814127593
You don't have to go with MSI, I'm just linking it to give you an idea of the price and specs of the card. Keep and mind that prices and availability will vary with european sellers, but I expect this one to fit your budget just fine. Just make sure the card will fit your system and is compatible with everything. PSU, motherboard, case space... these are things you wanna be absolutely sure of before open the box of the GPU.
If you can't find them (or if they are too expensive) in europe, you could try the 560 SE, which is a bit less powerful and cheaper, or the 560ti which is considerably more powerful and somewhat more expensive. I would expect the 560ti to sell for around 200-220 euros.