"...a final proposal by the end of 2017 or early 2018"
Thereby, before it is approved, GHCQ won't have any access to EU data anymore <G>.
I don't find this proposal out of touch - inside EU people have freedom of movement (plus Schengen no borders controls) - and that requires more integrated law enforcement agencies to avoid old borders become a way to make crime more difficult to investigate.
If the France police is investigating someone living just across the border - and planning crime in France, there should be provision in place to ease EU wise investigations - a union can't be just a way to make money more easily - companies can't take advantage of a common market to headquarter in Ireland and Luxembourg and make money everywhere, just to raise their own walls when it becomes a disadvantage.
Of course, there will be the need to make it working inside each member state legal framework. But being in a union means also some rules need to be applied to the whole union, and some single state sovereignty has to be renounced - and more integration achieved.
It is different from the US/Ireland issue because Ireland is the EU, not in the US - there's not the equivalent freedom of movement and lack of border controls.