Britain under attack from 20 foreign spy agencies including France and Germany

I'm not quite sure what to make of this. I am not at all conversant in espionage or intelligence issues with other countries. Perhaps someone else will pick up on this and explain or leave me a link please?

Spies from 20 foreign intelligence agencies, including Nato allies such as France and Germany, are attempting to steal Britain's most sensitive secrets.

From (todays Telegraph)

"Russia and China have been identified as having the most active spy networks operating in the UK but it is understood that some European countries are also involved in espionage attacks against Britain.

Details of the spy plots were revealed in a government security document obtained by The Sunday Telegraph which states that Britain is "high priority espionage target" for 20 foreign intelligence agencies.

The report, which was drawn up by an Army intelligence cell inside Whitehall, warns that it is too easy to "lose sight" of the threat from traditional espionage and become solely focused on attacks by al Qaeda.

The document, which has been distributed to all government departments, states: "Whilst our primary threat would seem to come from International Terrorism, it is important that we do not lose sight of another omnipresent threat. Espionage against UK interests continues to come from many quarters."

The report, dated 19th January 2009, continues: "In the past, espionage activity was typically directed towards obtaining political and military intelligence. In today's high-tech world, the intelligence requirements of a number of countries now include new communications technologies, IT, genetics, aviation, lasers, optics, electronics and many other fields. Intelligence services, therefore, are targeting commercial enterprises far more than in the past.

"The UK is a high priority espionage target and a number of countries are actively seeking UK information and material to advance their own, military, technological, political and economic programmes.

"It is estimated that at least 20 Foreign intelligence services are operating to some degree against UK interests. Of greatest concern are the Russians and Chinese. The number of Russian intelligence officers in London has not fallen since the Soviet times."

What is happening? Is our Government just paranoid or have we made so many enemies of Islam (that seem to be residing in our country) that WE have ourselves become the enemy?