"If it's true that the Americans have been spying on their allies, then there will be a political fallout," a European Union source said, speaking on condition of anonymity.
"This goes far beyond the requirements of national security. It is a breach of trust and we are at the beginning of something very serious," the source said, reacting to reports that Washington had bugged EU offices.
Another source said EU foreign policy chief Catherine Ashton had asked US Secretary of State John Kerry to "clarify as quickly as possible", although Kerry said that seeking information on other countries was "not unusual".
An EU-US working group has been put in place and is due to meet in July to exchange information on the extent of the Prism spying programme and how it affects EU citizens.
Political groups in the European Parliament are also angry and some of them, like the Greens, are calling for a block on US access to European bank data through the Swift system.
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