I mean German police is using Palantir.

There is nothing magic about Palantir, especially not about the subset of Palantir that the German police uses as we have stricter data privacy laws.

You might think that would be a strategic risk not worth taking especially with the US getting more hostile towards Europe but here we are.

Why? Honestly I don't have a good answer other than well the whole system is rotten, corruption, lobbyism, take your pick.