Entirely possible, the Celts came out of Europe after all. I've seen Spanish Celtic dance groups, the music certainly had a Celtic beat/rythm to it. Currently one of my favourite CDs is Genticorum "Malins Plaisir", a Quebecois group with fiddle, flute, guitar, bass, foot percussion. All sung in French, but sounds distinctly Celtic.

For more info www.genticorum.com they are worth a listen.

Al