OMG....this man is a molester! I can guarantee you that it "probably amount to nothing" if CPS knows this "man" is pulling his daughter up on him in HIS bed, showing with her, etc. If they DO turn a blind eye to it, I'd call this poor girls' mother. And I want to practically hug you to death for calling the counselor!! It started the ball rolling. I hate to tell him this, but it is NOT normal behavior in ANY country!!! Abuse is what it is...irregardless of where you are. Europeans might have a more relaxed attitude about sex and the naked body, but no one would agree that what's going on here is anything less than what it is....CHILD ABUSE.
It doesn't matter HOW OFTEN she sleeps with him...but if she doesn't have sheets or a comforter on her bed, that suggests that she's sleeping with him REGULARLY. Lots of fathers have "close relationships" with their daughters, that doesn't involve nudity and sleeping and showering together. This man is a pedophile...no ifs, ands, or buts about it.
I only hope that you continue to follow up on this...start screaming it from the rooftops if necessary. But if you've got a way to let the mother know what's going on, I'd do so. A call to CPS from you would certainly be in order as well. I would hope that you would get as far away from this man as you can. But saving this little girl first is of first importance. Then run....run as fast as you can...AWAY from him!