Is this a rejection? Yep, sounds like it. But! Not a total rejection. Try not to interpret too much, but take advantage of exactly what the message says:
"We need to talk again at the end of the year"
This is a permission for you to reach out to them again before end of this year (say, in early-mid December) with an inquiry regarding any openings at that time.
The part that is unclear to me is why the work would start so late, in "new Fall" (Fall 2017)? It might be a good question to ask them about the typical duration between recruitment and start date.
If you have already plan to come in Europe, please contact us.
This statement provides justification for you to contact them to let them know exactly when you plan to be in Europe. Say that you would appreciate the opportunity to meet in person to talk more about your qualifications, and ask about their availability during the dates when you will be there.
Also, "Europe" seems fairly broad - make sure you are willing (and can afford) to travel to their actual location before you actually offer to meet. It will not make you look good if you arrange a meeting and then cancel on them after realizing that logistics are not convenient for you.
Finally, realize that there may be multiple reasons for the tentative "rejection." It may have nothing to do with your qualifications, but a change in the internal situation of the employer, such as budget issues, or sudden cancellation of recruitment for this position. These things happen, and new opportunities can emerge just as quickly as existing opportunities disappear. I encourage you to follow up with them based on the suggestions above, and see how it goes. Good luck!