They are warning everyone that encryption will die on every platform if this is passed as a law. That means that any communication done via any platform should be un-encrypted by default or looks like someone (mostly the dev) should take accountability for un-encrypting it when any govt institution requires it, else it will not be usable in EU.
This is how I am reading her statement. I think we should support Signal in their fight against such insidious policies, because this will come to impact Nostr at some point.