There's not much need for that, to be honest, at least not for Continental Europe where the Schuko plug system is dominant. It's reasonably secure against children and offers enough capacity for all household loads, and industrial applications have all converged on the bulky IEC-60309/CEE-17 plugs.
Sometimes, a product is simply "good enough" and does not require further improvements (or alternatively, a better solution exists, but the cost for retrofitting is prohibitively large).
When USB-C outlives its usefulness there won't be any ready-made standard for the legislation to switch to. Or at least if there is such a standard it won't come from the EU, or any other jurisdiction with similar regulations. Why would anyone develop a new standard for mobile devices when the law says they have to use USB-C? There are more profitable ways to spend the limited R&D budget than designing new ports which you might not ever be allowed to use.
Besides that, whichever organization is behind USB is the obvious candidate. A new standard that's backwards compatible with the old one (because that's what consumers are likely after) except for the connector is best made by the org that developed the previous version of it.
In what way, spesifically? What can you improve in a metal connector carrying current?
To me, I don't see why government has any business in USB. Bluetooth maybe since it takes up the air. But USB? It's bad enough that wall sockets haven't improved. Will we be stuck with USB-C long after its natural EOL?