Lastly I 100% believe EU Hate Speech laws are totally counterproductive and yes a violation of free speech rights as well. Restricting speech only makes that viewpoint more popular not more unpopular.
The answer to stop far-right extremism is not to restrict speech but to implement policies that keep their view points in the fringes.
While I concur freedom of speech is sacred and restrictions may be counterproductive, freedom is not limitless. I don't know if there's an equivalent sentence in English, but there's one in my country that comes to say my personal freedom ends where your freedom begins. I think hate speech legislation follows this principle. Regardless the specific elements of this case and the debatable aspects of this piece of legislation, I think it's necessary some regulation. The question, of course, is where to draw the line between freedom of speech and hate speech. That's always a matter of endless controversy. However, I think there are clear limits such as incitement to violence. Racial, religious or ideological hatred may be interptrered as incitement to violence. Such things are not easy to determine and I tend to think in case of doubt freedom of speech must prevail.
I could agree with you that good policies are the best remedy that keeps extremists at bay, slthough I suspect we could disagree on which ones are good.
Also, as a citizen of the EU I have many criticism to make. The EU has many defects (bureaucracy, lack of internal democracy, complex decision making, etcetera), but its positive aspects in terms of peace and prosperity are undeniable. Despite its many problems and perennial crises, it's necessary and I hope it survives to be reformed in s positive direction. I am tired of certain Euroskeptic garbage (I'm referring to people like Trump and Farage). Never forget that World Wars broke out and Hitler came to power when Europe was a continent of rival nations.