I'm not really convinced just yet. If you have the data on-premises, you have control over the physical hardware. There can be reasons to trust your local authorities to not simply seize it, or spy on it in name of your competitor, but not those of the remote country. Also, jurisdiction is not that uniform in Europe.
My experience is Cloud Security is better than local in 99% of cases. And when it's been compromised it's been users / social engineering rather than the cloud service- think HBGary.
Jurisdiction might not be that uniform in Europe, but there the datacentres tend to be it's pretty good (UK, Ireland, Germany, Holland, etc).
Justin
It's the physical/political part that cannot completely be discounted yet. It still a pretty new area of globalization and I guess time will well.
To be honest though, we have a very strong heritage of protecting peoples data in the EU and have strong regulatory and legal controls around it too. We wouldn't let a government agency take data without the proper permission, as would be the case on site. I don't see any difference.
Justin
Hence, there can not be any data security in the cloud. However, Europe mandates that every company must delete your data if you ask them to. Whether companies actually comply with this and whether this is feasible at all with internet technology is a different matter, but at least this shows some good will. Things like this could make a difference.