Why would they just ban it for automobiles? That seems like one of the best case uses. What other applications are more important? Aerospace? Fishing rods?
The 3.5 billion dollar carbon fiber bike industry comes to mind. The Tour de France riders have been using carbon fiber frames almost exclusively for decades. Going back to welded metal frames would reverse decades of technical innovation.
Boats, airplanes, weapons, wind turbines, medical equipment, sports gear. How does Europe plan to defend itself and provide renewable energy without carbon fiber, let alone compete in these other markets with such a handicap?