You can't look at governments, but especially the EU, as a single entity. Some parts of it want to collect all data possible while others want to protect your privacy. Here is a good article on how EU courts and the Irish government for example had very different views on this topic [2].

The general pattern you can observe is some political entities and/or countries really like to push surveillance and data retention laws in the name of security, sometimes without possible understanding the amount of misuse this could enable [3]. On the other hand privacy activists and other political entities and/or countries fight back against those and push for laws protecting privacy and your data or prohibit mass surveillance [4]. Sometimes those political "battles" are pretty obvious, with a recent example being the chat-control plans of the European Commission that the European Parliament will hopefully/likely reject [5].

[1] https://techcrunch.com/2022/08/12/google-android-location-tr... [2] https://www.politico.eu/article/data-retention-europe-mass-s... [3] https://netzpolitik.org/2021/urgently-needed-france-spain-pu... [4] https://www.theverge.com/2023/5/11/23719694/eu-ai-act-draft-... [5] https://www.aol.com/privacy-busting-chat-control-plans-17282...