Exceptional cases indeed
"but in exceptional cases a government agency can request a legal intercept and Vodafone will provide access"
So, in summary they'll hand over your communications at the drop of a hat to supposedly lawful (yet probably warrant-less) requests from the nose-pokers of "friendly" intelligence agencies. And with the near unlimited budget of the state sponsored hackers, you have to wonder how long it would take the "unfriendly" governments to compromise the encryption routine.
So all in all, just a bit of additional security theatre for Angela Merkel's phone.