While eavesdropping may have reaped benefits for the United States, it has also caused headaches, especially following reports that it has been spying on its allies. Even as allegations about spying on German Chancellor Angela Merkel and tapping 60 million phone calls in Spain have triggered tensions, Europe is weighing its options and mulling on implementing sanctions against the U.S.

On Monday, officials in Europe considered denying U.S. access to bank transfer information that may help track down terrorist money around the globe. Amid the controversy, leaders in Europe demanded definite answers and assurances that the spying should be stopped. They also insisted that stricter rules on data protection be implemented or trade talks between the U.S. and European countries may suffer, although the Transatlantic relationship is very important to compete with China and other emerging markets.

A delegation from Europe have arrived in Washington to discuss what can be done to implement security measures are taken even as the rights of individuals are respected.

The buildup to the controversy traces its roots to classifed documents leaked by former National Security Agency (NSA) contractor Edward Snowden. 

A Spanish newspaper reported Monday about the millions of phone calls tapped by the  NSA in just a span of one month.

In the United States, California Democratic lawmaker Dianne Feinstein, chair of the Intelligence Committee of the Senate, issued a statement calling for a thorough review of intelligence collection initiatives of the government. She has been known as a staunch defender of Obama's surveillance policies and the NSA.

"Unless the United States is engaged in hostilities against a country or there is an emergency need for this type of surveillance, I do not believe the United States should be collecting phone calls or emails of friendly presidents and prime ministers. The president should be required to approve any collection of this sort. It is my understanding that President Obama was not aware Chancellor Merkel's communications were being collected since 2002. That is a big problem" Feinstein said in a statement.

"The White House has informed me that collection on our allies will not continue, which I support. But as far as I'm concerned, Congress needs to know exactly what our intelligence community is doing. To that end, the committee will initiate a major review into all intelligence collection programs," she added.

According to a New York Times report, the White House has not reached a final decision on the monitoring of foreign leaders considered as friends by the country. A thorough review of the surveillance policies is expected to be completed by December. The agency will most likely continue its intelligence gathering to intercept potential threats and criminal activities in friendly countries.

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