Both the NSA and various EU intelligence agencies were violating their various laws. Or, if you're a lawyer for one of these agencies, they had found convenient loopholes that violated the spirit of the laws and rendered them meaningless.
So if we apply the standard of intelligence agencies violating the laws mean a country is unfit for storing EU data, then many EU nations are now unfit to store this data.
> So if we apply the standard of intelligence agencies violating the laws mean a country is unfit for storing EU data, then many EU nations are now unfit to store this data
The difference is that EU citizens can hold "unfit" actors responsible, if they are from their own country (or even continent, via the ECJ); but they cannot do anything against the NSA.
So if we apply the standard of intelligence agencies violating the laws mean a country is unfit for storing EU data, then many EU nations are now unfit to store this data.