From the Washington Post:

BRUSSELS — European leaders united in anger as they attended a summit overshadowed by reports of widespread U.S. spying on its allies...
...
Merkel’s unusually stern remarks Thursday as she arrived at the European Union gathering indicated she wasn’t placated by a phone conversation she had Wednesday with President Barack Obama...
...
The White House may soon face other irked heads of state and government. The British newspaper The Guardian said Thursday it obtained a confidential memo suggesting the NSA was able to monitor 35 world leaders’ communications in 2006.
...

Other European leaders... Swedish Prime Minister Fredrik Reinfeldt called it “completely unacceptable” for a country to eavesdrop on an allied leader..."it is exceptionally serious,” Dutch Prime Minister Mark Rutte..."We want the truth,” Italian Premier Enrico Letta told reporters. “It is not in the least bit conceivable that activity of this type could be acceptable."...Austria’s foreign minister, Michael Spindelegger, said, “We need to re-establish with the U.S. a relationship of trust, which has certainly suffered from this.”...“I think we are all outraged, across party lines,” Wolfgang Bosbach, a prominent German lawmaker..."This cannot be justified from any point of view by the fight against international terrorism or by averting danger,” Bosbach said.

...

[T]here has been a new discernible vein of anger in Europe as the scale of the NSA’s reported operations became known, as well as the possible targeting of a prominent leader like Merkel, presumably for inside political or economic information.

...

“Nobody in Germany will be able to say any longer that NSA surveillance — which is apparently happening worldwide and millions of times — is serving solely intelligence-gathering or defense against Islamic terror or weapons proliferation,” said Hans-Christian Strobele, a member of the German parliamentary oversight committee. “Because, if you tap the cellphone or the phone connection of the presidents of France or Brazil, or the cellphone of the chancellor, then this is no longer about collecting intelligence about international terrorism, but then that is about competition, about getting advantages in this competition and winning. That’s why today is a watershed moment.”

Martin Schulz, president of the European Parliament, said Europe’s undermined confidence in the U.S. meant it should suspend negotiations for a two-way free-trade agreement that would account for almost half of the global economy. The Americans, Schulz said, now must prove they can be trusted.

“Let’s be honest. If we go to the negotiations and we have the feeling those people with whom we negotiate know everything that we want to deal with in advance, how can we trust each other?” Schulz said.

...

Germany’s defense minister said his country and Europe can’t return “to business as usual” with Washington, given the number of reports that the United States has eavesdropped on allied nations.

...

A German parliamentary committee that oversees the country’s intelligence service met to discuss the spying allegations. Its head, Thomas Oppermann, recalled previous reports to the panel that U.S. authorities had denied violating German interests, and said, “we were apparently deceived by the American side.”