The European Union has accepted a final report on an investigation into the Echelon network, citing that enough evidence has been found to prove the spy system does exist.

A preliminary report was delivered to the EU at the end of May, but this only suggested that Echelon existed.

A team led by Gerhard Schmid, the German Member of the European Parliament, was charged with further investigation. At an EU meeting in Strasbourg on Wednesday, the team delivered a 140-page report confirming the spy network's existence.

Carlos Coelho MEP, chairman of the investigative committee, said: "There were those who said we would not be able to find sound evidence... We can say very clearly that Echelon does exist."

The report also included 44 recommendations on how to defend European communications against Echelon. These measures were voted in by 367-159, with 34 abstentions.

The basis of this defence will be to set up a joint encryption system. Advice to businesses is to start encrypting all emails.

The report also called upon European Union nations to sign a ban on industrial espionage within the EU, and to press for the European Parliament and Washington to draw up rules for stronger international laws on data and privacy protection.

Schmid said that although the capabilities of Echelon may not be as far reaching as first thought, the alleged joint venture between governments of the US, UK, Canada, Australia and New Zealand can still suck up private data "like a vacuum cleaner."