Some countries do. As an example Sweden passed a law that allows them to record all the traffic that crosses their borders. The problem is that practically all

Some countries do. As an example Sweden passed a law that allows them to record all the traffic that crosses their borders. The problem is that practically all of the connections from Finland to central Europe goes trough Sweden. And Sweden absolutely certainly gives all of that data directly to NSA willingly. They are now planning a direct cable from Finland to Germany mostly due to that change in Swedish law. Thankfully Germany seems to be rather annoyed by constant spying, perhaps partly due to East Germany's history with massive domestic spying.