Edit: since I am getting down voted let me explain.
> The EU Data Protection Directive requires that personal data a company collects can not be moved somewhere where the consumer will have weaker protections than in the EU.
Practically it means that data can not be moved outside of EU, since they would be under different jurisdiction. For example court in EU must approve all data disclosures. If data are in US the disclosure could bypass courts in EU, there could be even gag order.
Simply put, the EU can not enforce its law in foreign countries. Safe Harbor and similar are nice in theory, but it still does not put them under EU jurisdiction.
BTW: Irish Google got sued already for sharing data with american mother-ship.