As far as I know for the time being only financial institutions in EU are prohibited from using XMR, DASH and other privacy coins. Individual users are still allowed to use them as long as they are not transacting with the financial institutions.

However EU is trying to phase out cash indeed. The EU governments are gradually lowering the maximum allowed limit of cash transactions. It varies from country to country but in most cases is somewhere in the range from 1,000 EUR to 5,000 EUR. However these limits are constantly being lowered. For example in Greece they will soon limit the max. cash transaction to 500 EUR.