Even before this proposal, Wikipedia would be flying very close to the wind on copyright were it hosted in the EU. "Fair use" is a US principle that isn't necessarily echoed in EU member states (the UK, for example, has a much more limited concept of "fair dealing").

It's notable that OpenStreetMap, which is hosted and governed in the UK, refuses to take data from Wikipedia because it believes it's tainted. (Specifically, Wikipedia says "you can get co-ordinates for articles by deriving them from Google Maps"[1], to which OSM says "nuh-uh".)

[1] https://en.wikipedia.org/wiki/Wikipedia:Obtaining_geographic...