It's German not EU level, the NetzDG act has a 24 hour turnaround time for taking down content that is "clearly" illegal:

https://en.wikipedia.org/wiki/Network_Enforcement_Act

Unfortunately the act is designed to block vague categories like "hate speech" and "misinformation" and has huge fines attached, so it's designed to ensure that very trigger-happy enforcement is the only workable strategy. It was written to whack Facebook and Google primarily but it's possible that the wording also captures Hetzner, or they're worried that it might.

If they do feel they fall under it then they'd probably have to automate takedowns in response to abuse reports. As otherwise they'd need 24/7 on-call content reviewers, which goes against their low cost nature. So if this is the cause it's really an issue with German law being unfriendly to smaller/cheaper content hosters.