I think this whole thing about calling a C class 'Europe Select' and telling you it is not business class, is a bit of a word game... To be honest IMHO the crew is just telling you some nonsense (to keep my expression polite...).
I agree that in reality it is more like an enhanced economy product, however any website (perhaps except the KLM website...) will refer to it as 'business class'. So if they really wanted to downgrade it, they should have changed the fare bucket designators.
BTW: Welcome to FT FlyingSerb!