Is there any hope that something tangible is going to come out of that? Given its history it seems more than unlikely that Germany has any abilities of severe actions. Oh well, I am sure they are going to send a detailed list of issues that need to be addressed through "diplomatic channels"...
Germany for obvious reasons has significant power in the EU, killing the free trade agreement and blocking further cooperation on any levels would certainly be possible.
No. And actually my tinfoil theory is, that the federal prosecution is handling this, so that they can take anything PRISM related from local prosecutions, to bundle and bury it as one large package.
Doubtful, the German secret service is dependent on the CIA/NSA to get their job done, they are awfully bad and will help in every way to cover this.
German politics will just bend over making a happy face.
But it will do really severe harm to the image of the US in the German population. A lot of Germans have a love/hate relationship with the US, and this will not go down unnoticed.
