Skype encryption thwarting police and intelligence agencies

The Europeans want to put in place a legal framework to tap VOIP
conversations. The thing is, even if they HAVE legal jurisdiction , it
won't matter since Skype is heavily encrypted and even if Skype wanted
to they wouldn't be able to help them break the encryption. My guess is
that they'll demand that any VOIP program needs to be able to be
wiretapped. But what if Skype doesn't comply? And what if someone
releases an open-source program which has similar strong encryption
like Skype? Will they ban it? Will they eventually try to ban all
encryption on the Internet?

In my opinion the law enforcement agencies lost the battle long ago, in
the 1990's, when Phil Zimmerman released PGP and won the court battles
that followed. In the future, more and more programs will encrypt data
in transit, making it impossible for anyone to listen in.