France and Germany demanded that Washington respond to reports that the National Security Agency spied on European institutions, in the latest diplomatic eruption to follow the revelations by rogue contractor Edward Snowden.

French President François Hollande, abandoning the usual niceties of trans-Atlantic dialogue, told the U.S. to stop spying on European diplomatic outposts and suggested that coming free-trade talks between the EU and U.S. now hang in the balance.

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