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I literelly installed this a couple of days before you and ran into the same problem.
Here's what I did to get it working
Open the start menu
Find "Programs and Features" and open it
Click "Turn Windows features on or off"
Scroll down to "Legacy Components" and expand
Check "Legacy Components" & "DirectPlay"
Click OK
It was also necessary to configure "dmcr.exe" to run in Windows XP (SP3) compatiblity mode.
Open Steam
Go into you library
Right click Cossacks: European War and click properties
Click the "Local Files" tab
Click "Browse Local Files"
Right click "dmcr.exe" and click properties
Click the "Compatiblity" tab
Check "Run this program in compatiblty mode for:"
Select "Windowns XP (SP3)" from the drop down menu
Click Apply & OK
From there, hopefully you should be good to go :)
Good luck dude!
I only have a desk top short cut to Steam which then loads the game on.