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Chat Control 2.0: EU governments set to approve the end of private messaging and secure encryption
(www.patrick-breyer.de)
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Of course it is encrypted by default, just not on device, but in the server side. Just like Gmail, office 365, and so many online services that are perfectly secure and that no one mentions as being a problem.
If you need End to End encryption, you have the option to use it, but being server encrypted it's more convenient for syncing on devices and for uploading files, which I use a lot.
Sorry you're right, I meant end-to-end encryption of course. (Gmail, Office 365, and most HTTPS websites are only encrypted in-transit though, not on the server side.)
Which is, of course, the kind of encryption that matters for this proposal. (And which I believe you don't have the option of using in group chats on Telegram, but don't quote me on that.) Non-end-to-end encrypted messages can already be obtained by law enforcement by coercing the service provider.