The decision is aimed at preventing the re-registering in different EU member states of stolen vehicles, allowing checks to be made following re-registration applications.
Britain and Ireland are not members of the Schengen system, although non-EU states Norway and Iceland are.
The name Schengen originates from a small town in Luxembourg. In June 1985, seven European Union countries signed a treaty to end internal border checkpoints and controls. More countries have joined the treaty and currently there are 15 Schengen countries, all in Europe.