ID cards (and biometric ones too!)
Yes, I know this is not what you want to hear, but (AFAIK thanks to the USA) we on the continent have biometric ID cards and passports for many years already, and nothing bad has happened so far. Don't know, maybe we're holding them wrong?
Having an official ID card has it's perks though; For one I guess it reduces the chance of identity theft, given you are required to show that ID card every time you open a new bank account, take a loan, or generally do something which involves big money. Now those modern ID cards are very hard to fake, which puts impersonation beyond the (material and financial) reach of most criminals. Identity theft isn't a big thing around here.
Does it help Big Brother to track our every step? Certainly less than the cameras in UK streets: During a year I personally use my ID/passport only when traveling by plane. I don't open new bank accounts or take new loans every day. *shrug*
TL;DR: Storm in a teacup...