>Not all of Europe is part of the Five Eyes, or even it's outer orbits.
Five Eyes is only one such intelligence alliance. Germany, for instance, cooperated with the NSA despite not being part of FVEY: http://www.spiegel.de/international/germany/german-intellige...
The Dutch, again not part of Five Eyes, tapped phone calls to pass to the US. We don't know the full extent of which nations played a role. I'm willing to bet it's more than have so far been revealed.
>They don't have first-party access to US government communications, never mind, say, POTUS's cell phone.
Germany wasn't exactly giving the US access to their government's communications either, "just" private citizens. They did assist the US in getting access to the French leadership, though.
>"They all do it" is meaningless if one nation has an NSA and Greece has a sketchy looking guy with black shoes and no socks and a tape recorder.
When the large European nations are aggressively spying on their own citizens and then passing that info around to foreign governments in exchange for special software or information, it sort of renders their complaints about the NSA kind of moot. Yeah, the NSA spied on your citizens, but you helped them.
For those nations that didn't engage in this, I have a feeling not having your data in America isn't going to prevent the NSA from getting it if they desire it. Especially since much of that data will end up in the sorts of European nations that are spying on their citizens and trading data with the NSA anyways.