Well, although that should be the case, they say they cannot guarantee the transfer without an additional fee.
THen your bank is just trying to make excuses. Bank transfer between EU countries is not different from local bank transfers. They tend to charge handling costs but it is just few euros.
Though not all banks are aware of EU regulations and think they can ignore it...
Going down to the bank to make an international bank transfer is a pain. People want to click and buy, and download.
I could not agree more. PayPal works better than most banks.