The European Commission yesterday unveiled plans for an international charter aimed at establishing principles governing business on the Internet. It would encourage co-operation between governments on legal and technical issues such as data protection, copyright, taxation and control of pornography.

"If we don't agree to terms globally, we will each try to set our own regulations, which will lead to over-regulation," said Mr Martin Bangemann, the EU commissioner in charge of telecommunications, who presented the plans with Sir Leon Brittan, the EU's trade commissioner. "But if we do nothing at all, there will be a lack of confidence in the Internet by users."

The two commissioners stressed that the charter would not need a new international supervisory authority and would not be legally binding, but would encourage the international community to reach an understanding on how best to develop common approaches to problems.

"It is not a new international organisation we are talking about, but a flexible co-ordination mechanism," said Sir Leon. "We need to be fleet of foot ourselves to match the nature of the industry."

Last year, US President, Mr Bill Clinton, outlined a framework for global electronic commerce, endorsing the principle of self-regulation for the Internet.

But the US is likely to be wary of any EU initiative with bureaucratic overtones.