European Union telecoms ministers approved on Tuesday a law giving digital signatures on contracts agreed over the Internet the same legal status as their hand-written equivalents, EU diplomats said.

"It was approved unanimously with zero discussion," one EU diplomat told Reuters. EU member states now have 18 months to implement the law which is expected to boost electronic commerce and help Europe make good the e-business gap between itself and the United States.

The agreement is aimed at guaranteeing the security of trading over the Internet and other electronic networks, and removing one of the remaining obstacles to the growth of e-commerce.

Electronic signatures are used to ensure that electronic exchanges are authentic and confidential, and are considered crucial for transactions ranging from filing tax forms with the government to buying goods over the Internet.

They allow people getting data over electronic networks to determine the origin of the information as well as to check whether it has been changed.

The law approved by ministers establishes minimum rules on security and liability, ensuring electronic signatures are legally recognised across the EU, and sets out certain requirements which must be met for the signatures to be recognised.