Capitalist business vs. anti-capitalist activism. What’s happening is repression by a capitalist state against antifascist organisation, nobody cares about laws.
The antifascist structures can’t effectively work inside the rules of a system designed by and for capitalists and the law (in this case) does not exactly include foreign structures. The US (and its corpos) does all kinds of unlawful things outside of its borders, if you haven’t noticed. However, the law shields domestic corporations from foreign laws, as they are usually headquartered in the US and only need to adhere to US law as this is only applied domestically.

Our principles are fairly straightforward: the world should not be run on money, should be rooted in solidarity, community, mutual help, equal rights and freedom, and social justice.

That’s not “Europe slowly moving off US software”. Projects like these exist to protect against European state repression, as they exist to protect against any state repression, period. I’d also bet, that their thinking wasn’t “we need a European alternative, so the USA can’t spy on us”. So yes, it’s great, there are other projects similar to this one in other countries, as well, but your take doesn’t make much sense.

Du bist da was ganz Heißem auf der Spur.

You mean a nation state, complicit in genocide once again, violently suppressing pro-Palestinian voices is voluntarily surrendering their veto power, as to not impose their Staatsräson on other nation states within its sphere of influence? I don‘t think so!

Germany has leverage through it‘s size and influence in the EU, especially in scenarios with QMV (Qualified Majority Voting). So even without unanimity rule, it still has a lot of power to create consent.

Without the unanimity rule, they‘d become virtually impossible to outvote, as they only need a few allied countries, while still being able to build a blocking minority (this is what happened in the article posted by Sem, not a veto, but a block by minority vote). It would also have the power to discipline smaller countries, forcing them to tow the line, aka marginalizing them.

So contrary to your take, Germany is trying to maximize its power in the EU, which is in line with the aspirations of Merz wanting Germany to become a regional power again. The Hungary example has its basis, but I find it to be rather convenient for Germany‘s strategy.

Practically in terms of current conflicts this means for Germany: Become untouchable and a Blocker in regards to measures against Israel, while also easily force action on Ukraine.