I don't think anyone is really holding the entirety of Spain responsible for whatever is happening here, there's a few generic statements, my own included that are somewhat tongue in cheek.
To be honest the idea that any Hispanic culture would ever grow to 'dislike' music is pretty unfathomable to me, Music is a massive part of any culture, but Latino/Hispanic culture is notably passionate about it, it's partly that which surprised me about this case.
I suppose the thing is that every country in the world does have silly rules in there somewhere, but if in the UK we actually tried to jail someone for, for example, defacing the Monarchs head on a coin or stamp, the Judge would probably shout at the CPS for wasting public money on something which really should never have made it to court. Since the article does not mention the Judges response to this case at all, and probably will not until he or she makes an official statement on it, this may be the case here as well, only time will tell.
And yes, this is nothing whatsoever to do with the EU, local laws such as this do not fall under the jurisdiction of the European Court at this level. If, however, she is thrown in jail, it might be part of the appeal process if things went that far, I'm not sure of the precise mechanism involved though, so I could be wrong.
Edit : Just changed references from Latino to Hispanic for accuracy.