If the government can break encryption, so can hackers. If hackers can break your encryption, and my records are being held in it, then your competition will eat your lunch as I move my records to their services.

Either my data is safe from rogue agents and rogue governments or it is not. If encryption is outlawed, only outlaws will use it.

The EU can make as many logical conclusions it wants to, but reality will come back and bite their law enforcement offices that their criminals won't stop using unbreakable encryption.

The difference between theory and practice is greater in practice than it is in theory.