Is this just wishful thinking or is there a specific functioning democratic government that should we all trust?
My opinion is that nobody should trust any government. Not fully at least. Not their own. Certainly not somebody else's. History has shown this to be a generally prudent position to take. I mean, why should I trust the German government more than the United States government? How about Norway or Kenya or Thailand?
I do not think there's some magical country that is about to have a big business advantage based on "trust" because their citizens value privacy (as if that were even measurable). Most likely, countries will just become a touch more insular with their technology, noting that it, like food production, is somewhat of a national security issue.