German State: Wire transfer snooping illegal

Raw Story says that a German state has found the US snooping on wire transfers to be a violation of both German and EU law:

The Data Protection Commission within the German lander (or state) of Schlewsig-Holstein published an analysis of the handing over of transactional data from the agency SWIFT in Brussels to the US government. It found that the practice violates German and European data protection law because there is no legal basis for the transfer of intra-European transactional information to the US SWIFT processing center, and because US-EU transactions do not have their data properly safeguarded by the US.

With the Commission finding a lack of legal basis for the SWIFT monitoring, it called for an immediate cessation of the mirroring of European data in the US SWIFT data center.

I wonder how Bush will counter this one. Do you suppose his Article II powers include overriding German law? Or, alternatively, I suppose we could attack and invade Germany to force our laws on them.