As a fellow European, what I find fascinating about this is that we all mostly want to accomplish similar things:
1) The government shouldn't go on fishing expeditions for citizens breaking the law
2) Avoid oppressive laws
3) Avoid unexplainable, opaque and secret laws, of which arguably "ML model says no" is a really nasty example
In most countries, the debate about this is only tangentially related to privacy, but in Germany it's all about privacy.
By being so obsessed with privacy, Germany seems to avoid a lot of nasty effects of technology. On the other hand, y'all still don't have Street View, couldn't buy VR headsets for multiple years and getting two government offices to exchange your information is basically impossible. (And I always forget that I need to have physical cash when in Germany, like in 1992.)
I am guessing that the German POV is that those things were worth it to avoid the bad side effects, but it's also the case that other European countries have avoided the bad side effects without having such blanket bans on large scale data processing.