Effectively it causes the same loss of security and trust as if they broke the encryption, but it allows them the fig-leaf of pretending that you're still secure because they "haven't broken the encryption".
I wasn't expressing an opinion in that comment but I do find the whole concept terrible.
That comes later with ProtectEU.
"Technical experts call on Commissioner Virkkunen for a seat on the table of the European Commission’s Technology Roadmap on encryption"
https://edri.org/our-work/technical-experts-call-on-virkkune...