Germany has been incensed to learn that the NSA was carrying out widespread spying, including listening in on Merkel's mobile phone conversations.
The NSA allegations were especially damaging in Germany due to sensitivity over mass state spying on citizens by the Stasi secret police in the former communist East.
Norbert Roettgen, head of the Bundestag's foreign affairs committee and a member of Merkel's CDU party, said Obama's comments were "technical" and didn't respond to "the real problem" of "transatlantic divergence" on matters of security and freedoms.
Germany's confidence in Washington will not be restored unless "we sign an accord to protect, in a way that is judicially binding, the data of all citizens," German Justice Minister Heiko Maas said in comments run by the Bild am Sonntag newspaper on Sunday.
Efforts by Berlin to introduce a "no-spy agreement" with the US have so far fallen on deaf ears.
Obama is scheduled to visit Brussels on March 26 for an EU-US summit when the issue is likely to be broached by his European counterparts.
The European Union said Friday that Obama's commitment to reform phone data collection was a step in the right direction, but called on the US president to enshrine the pledge in law.
"I agree with President Obama: More work will be needed in future. I look forward to seeing these commitments followed by legislative action," said EU Justice Commissioner Viviane Reding.
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