Speed limiters are already compulsory on all lorries and buses, and the EC wants to extend this to cover vehicles with more than eight passenger seats and all goods vehicles weighing more than 3.5 tonnes.
Loyola de Palacio, EC vice president and Energy and Transport Commissioner, said: 'Lowering the average speed of vehicles results in less accidents. Accidents which do nevertheless happen are frequently less severe. 'Lower speeds also mean reduced fuel consumption, reduced wear on engines, brakes and tyres, and reduced emissions, helping to reduce environmental damage.'
The EC estimates that the financial benefit of installing speed limiters on large vans would save 3 billion Euros across the European Union. But the Commission has ruled out extending its proposed speed limiter directive to include cars.