In concrete terms, what would this fork change compared to current Firefox? Just shouting "privacy-first alternative" is pretty vague. Also, good luck getting enough sustainable funding for that kind of project from the EU.
Most of EU funding for OSS project is spread out to lots of projects, with relatively small amounts - Gnome got $1M recently and celebrated as a "big" milestone. I'm not saying that this is bad, but that's not how you can fund a core browser team.