It is worth mentioning that EU also funds the open source development required to enable translation engine in Mastodon:

https://github.com/mastodon/mastodon/pull/19218

"This project was funded through the NGI0 Discovery Fund, a fund established by NLnet with financial support from the European Commission's Next Generation Internet programme, under the aegis of DG Communications Networks, Content and Technology under grant agreement No 825322."

I think it is a much better investment in the future of federated social networking, than trying to get control of it by setting up a centralized instance for EU-citizens, as someone else suggests in the comments.