Does Germany produce routers? Firmware? Would it be "airgapped" with the U.S. internet?
Having Merkel's phone monitored must have been a blow.
That said, having a nationally routed Internet makes sense. (edit: article says 90% is already routed nationally)
The article itself says it's not practical, and mostly posturing.
"The only way to change this would be for Germany to require local hosting of websites, a drastic move according to experts that has not yet been pushed by German leaders. Deutsche Telekom declined to say whether it would lobby for such an approach.
Brazil's President Dilma Rousseff, angered by reports that the U.S. spied on her and other Brazilians, is pushing legislation that would force Google, Facebook and other internet companies to store locally gathered or user-generated data inside the country."