Well that may be U.K law, but here in Finland it's the manufacturer/importer that's responsible for the device lasting at least a reasonable amount of time without faults, not the retailer.
No, the Finnish Consumer Protection act is quite similar to the UK Sale of Goods Act. The seller is primarily responsible for the quality of the sold goods for a 'reasonable period of time'. Whatever is deemed reasonable depends on the goods, with computers that's usually two years.
The EU warranty you mention means manufacturers have to offer the same warranties across all EU countries, and respect warranties of goods purchased from other EU countries. It's not the same as consumer protection acts of the individual EU countries. The consumer protection acts were also harmonized across EU, meaning the consumer protection laws are now similar in all EU countries. But those laws still only apply in the country you purchased the goods in question from.
See these (sorry, in Finnish only):
Valoa takuun ja virhevastuun hämärään välimaastoon,
Virhevastuu ja takuu kuluttajatavaran kaupassa and
Kuluttajansuojalaki
Here are some in English:
Consumer Protection Act (PDF) and
Consumer protection
Even if you appeal to the Consumer Protection Act, it's actually your responsibility to show there was a manufacturing defect that caused the failure. This can take a long time (several weeks), and there might be initial payments involved (these will be refunded if a manufacturing defect is found). If the seller can't/won't fix the issue (e.g. is no longer in business), it is possible to escalate the issue up the supply chain, but this takes even more time and effort, and still requires proof of a pre-existing defect.
Some resellers are very helpful with consumer protection claims, some require you to jump through hoops. YMMV. If the seller decides to make things difficult, you can make complaints to the Consumer Ombudsman, but this will take a lot of time and effort too.
Traveling insurances have varying levels of coverage, but usually you have to pay more than you would for a basic insurance to get one that fully covers your electronic devices. And you have to pay deductibles, so you may very well end up paying as much as you would for AppleCare. And, while travelling, I would rather use my time for something else than trying to argue with a reseller/service partner over an insurance claim or consumer protection act claim.
Also, AirPort and Time Capsule are covered even if they were purchased up to two years
before the computer the AppleCare is tied to. So a four years old Time Capsule could be covered by AppleCare, but not by Consumer Protection Act.
Most likely you'll save a lot of time and effort if you get AppleCare, and you may even save money.
P.S. Sorry for the gazillion edits. I'm writing this on a phone, and had to save many unfinished versions, as Safari keeps occasionally crashing while I write...