Encrypting is a given - obviously you'd want to only be using Saas services in Germany etc that are fully encrypted. The problem in using USA services is that even if everything is fully encrypted, the USA can and will send goons around to take your data. Encryption is simply useless when dealing with a company in the USA who is forced to hand over the keys and whose data-centers can be legally entered and modified by thugs. Once someone has physical access to the server, the game is over.

Germany is a better bet. While they are no doubt tapping lines, Germany and the EU have made no moves to actually perform hostile interventions into data-centers or private servers. This means that encryption is still a very viable security measure for protecting your data in the EU. The EU simply has a far better track record with privacy related issues.

It's not about perfect security, it's about getting the best security you can hope for - and that means moving away from anything USA hosted.