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