What is a "a 200 Euro guitar and a 250 Euro amplifier" setup that you recommend? Honest question.
If you're just practising at home, the Positive Grid Spark 40 is an astounding bargain at under €250. It sounds great out of the box with a simple interface, but connect the app and you've got near-endless tonal options and tons of really useful practice features. It also does double-duty as a good Bluetooth speaker. Spend a little over €250 on something like the Fender Mustang LT50 or the Boss Katana 50 and you've got a versatile modelling amp that'll just about keep up with a drummer in a rehearsal room.
I have one of their telecasters, and it’s on par with a squier or a cheap fender, provided that you get it set up properly.
When I got to that cheap telly, I initially had planned to replace the pick ups, but guess what, the stock pick ups are good actually.
For amps, that strongly depends on your personal taste, but usually you go used. For example, if you’re into metal, you can get Peavey ValveKings for low $, they just require a good speaker. There are also several cheap clones available. YouTube has you covered with demos.
Also, digital amps have become good enough, even those software only, for example GarageBand. You just need some audio interface.
And that amplifier: <https://www.thomann.de/de/harley_benton_tube15_celestion.htm>
The amp is based on the Monoprice Stage Right 15W which is a clone of the Laney Cub 12R which is losely inspired by the Vox AC15. So you get a decent 15W tube amp with a real spring reverb for 260 Euros. There is not a lot with that amount of bang for the buck out there.
If you're playing in a loud band it might be a little underpowered, but it is perfect for playing at home, and if you want it to be any wilder than it is, just use pedals in front of it.