Merkel isn't exactly a proponent of digital privacy[1][2]. It's unbelievable that the government of a country where the Stasi were operating in living memory aren't incensed by this. If anyone's interested in a film showing what life was like under the regime, The Lives of Others is a haunting exploration of that period, particularly relevant to what's happening right now.
[1]http://infowars.net/articles/september2007/050907Merkel.htm
[2]http://www.dw.de/german-chancellor-merkel-rebuffed-on-terror...