Here in Germany I used to work for a company that swore off Amazon and other US cloud vendors because of things like this: the relationships between them and the government are too tight. They didn’t want German user data being compromised. It could have been FUD to do things on premises or what not but it seemed to make sense at the time and now with this...
This is such a ridiculously primitive view of the world it beggars belief. By taking this view you are significantly reducing your security posture, no improving it. There is an AWS Region in Germany. Your data will stay in Germany unless you specifically decide to move it elsewhere. AWS also provide you with the tools to encrypt everything and if done correctly means that Amazon no matter how "evil" they are cannot…
The measures you've enumerated (EU zones, encryption, etc) are mitigations for working with a potentially compromised vendor and should be done anyway. Not using the vendor is such a blindingly obvious countermeasure that one has to be either unprofessional or have a hidden interest to dismiss out of hand.