EU bureaucrats have sparked fury by demanding that Britain hands over the personal details of every motorist in the UK or face a £7.5million fine, it emerged last night.
If the Government fails to provide access to the information it could be fined at least £7.5million by the European Court of Justice.
Labour signed Britain up to the diktat known as the Prum Treaty in 2008, but Home Secretary Theresa May is yet to implement it.
Politicians fear the release of the DVLA data could lead to identity errors with Britons being accused of crimes they did not commit.
Tory MP Dominic Raab said: “The risks of data-sharing on such a scale have not been addressed, especially given the potential for innocent people to be caught up in the investigations of foreign authorities, and criminals gaining access to such information.”