The path to cross-border electronic commerce is being smoothed, with European Union telecoms ministers backing a directive on electronic signatures this month and UK electronic commerce legislation due in June.

The directive, approved at an EU telecoms council meeting late last month, aims to encourage use of electronic contracts and the legal recognition of “signed” documents and certification services across the EU. An EU spokesperson said the measures would allow users to “sign” documents transmitted via the Internet. Recipients would be able to determine the authenticity of the sender’s identity and check whether documents had been tampered with. If passed by the European Parliament, which has joint decision-making powers with EU governments on the issue, countries would have 18 months to incorporate the measures into national law. DTI telecoms minister Michael Wills, who was at the telecoms council meeting, said the decision was in harmony with upcoming UK government legislation. “The compromise reached in the council is entirely consistent with the measures we will be bringing forward on electronic signatures in our own electronic commerce bill, so we can look forward to an early adoption of the directive,” said Wills. A DTI spokesperson said it was likely the bill would be introduced in early June after industry consultation closed on 1 April, well ahead of the estimated 2002 implementation of the directive by other EU members. The UK legislation will go further than the provisions outlined in the directive, with recommendations to establish a licensing system for providers of cryptographic services. However, providers will join the scheme voluntarily after industry bodies voiced concern that making key escrow and third-party key recovery a requirement for licensing could hinder the development of electronic commerce in the UK.