And Switzerland is not part of the EU.
When I think "Swiss", "Germany" and "government intelligence agencies" then the things that come to my mind are Crypto AG [0], how the BND started out as a CIA OP [1] and how the very same BND seems to be more interested in pleasing American interests than protecting Germans [2].
Which is btw the same BND who cooperates with the NSA [3] to help them tap directly into one of the world's largest IXP De-CIX, completely legal in Germany [4].
The US made sure of that by pressuring the West German government into watering down the G-10 law [5] during the cold war.
So whatever "delusions" you are referring there to, you have to be a bit more concrete about them.
[0] https://www.theguardian.com/us-news/2020/feb/11/crypto-ag-ci...
[1] https://en.wikipedia.org/wiki/Gehlen_Organization
[2] https://en.wikipedia.org/wiki/ECHELON#Examples_of_industrial...
[3] https://en.wikipedia.org/wiki/Operation_Eikonal
[4] https://www.spiegel.de/netzwelt/netzpolitik/de-cix-betreiber...
[5] https://www.europarl.europa.eu/document/activities/cont/2014...
I don't think it's delusion, I think it is literally correct.
I’d almost rather just give a French company control over some section of the US warehouse if I’m Amazon.
Why is everybody working on the assumption that all this data has to sit in the US?
Keep it in a country with the strict-est possible privacy laws, say Switzerland, and noone would complain.