50s Mercury kit car Diesel?

Hi there, I'n kinda new to the forum so excuse me of any bad stuff i do :P

What diesel engine would fit in a 50s mercury kit car (fiber glass) and what other parts i need. I will use the car as a family car so it has to be a cruzer automatic transmission for sure :D and 300-400hp, and a good mpg, oh another thing I'm from Romania (Europe) so the engines has to comply whit the pollution rulz.... It would be nice if it was an EURO4 or close so i have an easy life registering it.

http://www.acautos.com/49-50-mercury/ the car

best regards and thx in advance :)