The EU privacy trilemma for agentic AI: China, expensive, or dumb. Pick one?

TL;DR: Self-hosting an agentic AI assistant in Germany. The privacy-friendly options all break down: Chinese APIs are cheap+good but data leaves the EU, US APIs mean CLOUD Act + real cost, EU providers are GDPR-clean but weaker at agentic tool calling, local hardware is €250–7,000 plus the maintenance tax. Currently on Mistral Large (~€5/mo). How did you solve this — and more importantly, how do you enforce the privacy split architecturally instead of trusting the LLM to behave? Setup Proxmox on a Dell Wyse