If it was me that deal would have never came to be. If some EU entity decides to use Microsoft 365 can Microsoft guarantee that it won't give access to one US government agency or another? It really can't. Because if that EU entity wants to act in accordance with EU law, this matters. This is what that deal was for. Basically the EU saying "it is okay" although it never really was okay.
IMO we in the EU need to finally start doing our own stuff that adheres to our own laws and isn't subject to the whims of a mad king. Public Money, Public Code.