Bo, the spying among allies has been going on for centuries. We, Europeans, are being a tad hypocrites about it. Do you sincerely think, there is no spying within the EU or even the Eurozone? Come on!
As for the first part of the problem, the internal spying, again, we, Europeans, are masters of it! I give you an example that I know well. After WWII, you think that the French government was not spying on the French communists, the main party of the opposition? The Party was openly pro Moscow as were half the trade unions. USSR was a foreign power, for all I know.
This meant that the French state had a duty to check on them plus the socialist party. They were not red but literally pink.
As for Western Germany, they were fighting an internal / external threat with the Eastern Germany. How could they clearly distinguish foes and friends when they were effectively all Germans? And I will not dwell on the leftist terrorists groups carrying terror actions in Germany. No internal spying there? Noooooo.
So again, when Watergate happened in the USA, there was a bit of a silence in Europe. As for Moscow, it was funny to read the Pravda. They could not fully explain what was wrong. Et pour cause...
So, you may be impressed by the theatrical behavior of our politicians. I am certainly not.