France has had similar proposals floating in their parliament. The latest iteration has been rejected
https://www.techradar.com/computing/cyber-security/france-re...
But the fact that such proposal is drafted and periodically brought up to this level, isn’t good, and it might be approved in the future.
Example of data collection by the German government
https://privacysniffs.com/data-retention-law/germany/
Australia's Encryption-Busting Law
https://www.wired.com/story/australia-encryption-law-global-...
What makes you think that EU governments don’t collect data from companies such as Hetzner or OVH, the same way that US collects from Microsoft or Google?