They count on people not having the energy to push through to get their money, but in my experience they pay as soon as they realise you know your rights and is dedicated enough. But it’s the main reason I never fly Lufthansa any more when I can avoid it.

Individual countries are usually left to enforce these laws on their own. Many EU countries are already subsidizing their national carriers in one way or another, so they aren't always keen to push passenger rights. For example Germany notably allowed Lufthansa to illegally hold customers' funds for more than a year after cancelling flights during COVID.