A European Commissioner has slammed the "unacceptable" red tape still hampering businesses and individuals 20 years after the EU single market was supposed to make crossing borders simpler.
Industry Commissioner Antonio Tajani was announcing plans to remove complications facing EU drivers who live part of the time in another member state.
He said his plan would simplify registering a car in another EU country - and in some cases abolish the need altogether.
But there is no intention to introduce a single European number plate - car registration and number plates remain national.
Currently motorists moving their car across borders temporarily for extended stays in holiday homes and for work, face fines if they do not re-register the vehicle in the host country within a fixed time.
The Commissioner says that what should be a simple procedure in the 21st century single market remains "cumbersome" because of different national rules and conflicting requirements.
The result is an average five-week wait and a cost of about £330 to change plates - a "significant barrier to the free movement of goods, services and workers" and therefore an obstacle to growth and jobs in Europe, said a Commission statement.
Mr Tajani said:
"Twenty years after the entry into force of the internal (single) market it is unacceptable that there are still so many obstacles for citizens and business. Our proposals put an end to many car registration formalities and lengthy procedures."
He said the benefits would include substantial savings for rental car companies, with the prospect of lower car rental prices for customers.
Under the planned rules, all EU countries would have to recognise the right of firms to register their company vehicles in the "main office" member state but keep them in their offices elsewhere in the EU without changing plates.
Buying and selling second hand cars across borders and registering them would be easier because of streamlined technical checks, and increased co-operation between national registration authorities should make it impossible to register a stolen car.
The move was good news for car rental companies who would face fewer hurdles moving their fleets across Europe to meet seasonal demand. PA