Europe's First Amendment

It seems that the first "amendment" to the European charter of rights will be to prohibit speech, even if it is speech of the most reprehensible sort. EU considers plans to outlaw racism is the Telegraph's take. This is straying into some very dangerous territory. If religion is sacrosanct and cannot be criticized then what about religions that belittle others? Where is the line drawn? Nigel Farage of UKIP also speaks cogently to the inclusion of "xenophobia" in the mix. Would it have been xenophobic to write the stinging criticisms of Hitler's Germany that many writers produced in the 30s? If a population is going through a mass psychosis, isn't it appropriate to point this out? The great virtue of free speech is that arguments can always be argued against, and Madison recognized this. Better free speech that allows the hateful to speak and have their arguments demolished than restricted speech that allows hateful arguments to fester, spread underground and eat away at the body politic like a cancer. Britain needs a real "first amendment" and it would be good for the Tories to champion this idea.