Government ministers have given the DVLA approval to pass the details of British motorists to foreign police forces, which will then chase any outstanding parking tickets or speeding fines.
It is reported that from March next year, the DVLA will also distribute tickets on behalf of authorities abroad, but will not be able to penalise drivers by adding penalty points to their licences.
Under the new laws, EU member states will be legally bound to follow up unpaid fines if requested by another member state.
Such a move would affect company drivers, and their fleet operators, travelling abroad on business or for pleasure.
Some motoring organisations have raised concerns over which language the fines will be issued in and whether drivers will have the same access to appeal as they would in their own country.
Officials at the DVLA have so far been unable to confirm they had been given permission to pass on driver details.