European citizens have the right to shop around. If they choose a cloud provider from a European country with higher data protection than their home country, they can send a message to their own government.

Swiss data protection law is an example of this. An Italian municipality could choose to use Infomaniak or Exoscale and increase their sovereignty and privacy.

As a European citizen, I can assure you, my options are getting ever more limited. Several global companies have kicked me off their platforms recently due to all the regulations they can't be bothered with. Those that make an effort to comply are by default required to submit to the EU surveillance system. At the same time, I have no illusions that any of this would somehow protect my data from the NSA and the like.

In my view, data can only be protected by its rightful owner. And for that, we need education, not regulation.