It is, apparently, true that the EC is considering schemes for key escrow, by "trusted third parties"
There is an extensive survey at the European Cryptography Resources page, http://www.modeemi.cs.tut.fi/~avs/eu-crypto.html The EU commission's group DG XIII has been discussing key escrow for quite some time, but they have not yet been able to agree on a position. Jerome Thorel has posted some rather scaring interviews with EU official David Herson who is in favor of a key esrow scheme. Victor Mayer-Schoenfelder reports that crpyo regulation is likely to be delegated to the more liberal DG XV. A number of member states, such as Denmark, very unlikely to accept key escrow.
ftp://ftp.dcs.rhbnc.ac.uk/pub/Chris.Mitchell/istr_a2.ps
Ross Anderson has analyzed Mitchell's scheme, drawing the conclusion that "The GCHQ protocal is very poorly engineered." See ftp://ftp.cl.cam.ac.uk/users/rja14/euroclipper.ps.Z
I'm informed that this is likely to be introduced into EC legislation, though my understanding is that members are not required to actually incorporate the legislation. No doubt France will embrace it with happy shouts.
The final decision will almost certainly with the member states, because cryptography is considered essential for national security.