What level of freedom is lost here? We're NOT talking about mass surveillance generally but the targeted access described by the OP. It's the difference between the police parking a van outside a suspected gang hideout (hopefully after getting a warrant), and parking a van outside every home in America. Most Americans are OK with the former and NOT OK with the latter. And, IMHO, that's a valid trade-off to make in a democratic society.
You might object to a particular surveillance target (Merkel), which is understandable. But would you object to spying on Putin? I suspect even Germany (especially Germany) would be okay with the NSA conducting targeted surveillance of senior members of the Russian military with ties to Eastern Ukraine.
In an ideal world, there would be no surveillance or any surrender of liberty in any scenario. But the world is not ideal and compromises are made. Germany is not immune to this. Case in point: Hate speech is illegal in Germany, which is understandable given German history, but a violation of free speech rights in the U.S. The challenge is not to reject all infringements of freedom wholesale but to identify where lines can be drawn between what can be tolerated and what must not.