In her weekly podcast, German Chancellor Angela Merkel has proposed the creation of a European communications network to help improve data protection.
The network would avoid emails and other data automatically passing through the US.
Angela Merkel said she would raise the issue on Wednesday with French President Francois Hollande.
Revelations of mass surveillance by the US National Security Agency (NSA) have prompted huge concern in Europe.
Disclosures by Edward Snowden suggested even the mobile phones of US allies, such as Angela Merkel, had been monitored by American spies.
Classified NSA documents revealed that large amounts of personal data are collected from the internet by US and British surveillance.
Angela Merkel criticized the fact that Facebook and Google can be based in countries with low levels of data protection while carrying out business in nations that offer more rigorous safeguards.
“Above all, we’ll talk about European providers that offer security for our citizens, so that one shouldn’t have to send emails and other information across the Atlantic,” she said.
“Rather, one could build up a communication network inside Europe.”
There was no doubt that Europe had to do more in the realm of data protection, Angela Merkel said.
A French official was quoted by Reuters as saying that the government in Paris planned to take up the German initiative.
Germany has been trying to persuade Washington to agree to a “no-spy” agreement but without success.
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