She is behind the 'expected' level.
I very much think you're doing the right thing and helping her now, rather than waiting and see if she'll grow out of it or not. Because that's a high risk strategy.
(ie she may or may not grow out of it. Not all kids do. Nor do all kids learn to read. 20% of kids leave Y2 unable to read, and a fair number of them leave Y6 still unable to read. )
If she has problems, the earlier you find out about them the better.
The 'expected' level, is the level English children should be at after 2 terms in school. So don't compare her to European children.
In England if you can't read anything at the beginning of Y2 (when some European children start school) you're in trouble.
I can promise you the longer you leave it, the harder it is to catch up. And the more there is to catch up.
By and large school expect all kids to make the same amount of progress. If you fall behind you're expected to make the same amount of progress as everyone else (ie 2 sublevels or whatever) - but you are never expected to catch up :(
So, you may be lucky. She may be behind now, but catch up easily and quickly next year without any help - or she may not.
my DD has severe dyslexia, and even before she started nursery I knew she had severe memory problems. She just couldn't remember anything. We used to call her 'our little goldfish'.
What I didn't know was that in a few years they'd call all those early symptoms 'dyslexia'.
What I didn't know was how bad she was compared to other children.
She never grew out of it. And I really regret thinking 'she's only 3/4/5 - too young to worry about.'
I Wasted 3 years I should have spent helping her.
I'm not for a moment suggesting that your child has dyslexia, or that she'll stay behind. All I'm saying is that at this stage you don't know either way. After 2 terms at school she's not making good progress. And you don't know why.
And all I'm saying is dont listen to all those people (including teachers) telling you not to worry, she's only young, in Europe they don't start school yet - all those people offering you advice won't have to pick up the pieces of a 7 year old or a 9 year old or a 11 year old who can't read. You and your DD will.