Do you know what will happen?
Northern Europe was home to some of the best servers in the world, especially the Netherlands and Germany. If all these measures advance to the level that has been discussed (which also has some exaggeration in the mix), many will move their websites from servers in Europe.
Yes, that's going to happen for sure, not many but I believe most will move their websites from Europe and that will impact the web hosting businesses of the Europe. They're not only against privacy but they're somehow against people's personal freedom and that's not going to be helpful at all.
I believe such a move will take Europe backward and many people who're currently living there might not be able to bear such anti-privacy things and thus they might move to other parts of the world too.