It's a DNS resolver, not an authoritative DNS server. So it's similiar to Google's 8.8.8.8, Cloudflare's DNS resolver, or the DNS resolver that is provided to you by your ISP.
Or like the Unbound recursive resolver that I run here. Unless there are moves to mandate the use of the EU resolver network, then there's nothing to freak out about.
Nope, what is described is addition of new DNS servers for EU users with some extra things on top for monitoring and premium services. It's not the intention to create a new parallel/separate internet where new TLDs will exist.
Good move from network point of view, good for most users but with a few caveats for more experienced users ;-)