The color of skin is no more relevant to anything than color of hair. You can know the percentage of, say, red-haired people in your country, but what for? The only thing where that could be needed is to fight e.g. some Dark Ages prejudices against red-haired people, and this is expected to be a marginal issue, not some all-encompassing national program.
The same goes for religion. In Europe, religion is inherently private endeavour.
There is no need for public knowledge for racial or "country of origin" statistics. There is no need to specifically hide or distort this information, of course, but it is of interest only for law enforcers. Anybody else who asks for it usually have questionable motivations.
Europe has had a lot of bad experiences when it comes to how we've treated our minorities, and the census has often been used as a tool for finding "undesirables". And I'm not only talking about countries like Germany here; Sweden had a policy of forced sterilisation for reasons of "racial hygiene", that it didn't discontinue until 1975.
The idea is that it should be impossible to, for example, get a list of all the communists in an area, or all the homosexuals, or all the moslems, or everyone of African descent.
It's a defense of minorities against a future fascist government. Which I think is kind of neat.