The EU Commission president is expecting that vehicle manufacturers that do not meet forthcoming CO2 regulations will be fined.

José Manuel Barroso, told Bild am Sonntag newspaper that "There should be consequences if vehicle manufacturers do not comply with limits. They should pay some kind of find. Otherwise the whole system would not be very credible," he said.

He said that the Commission still wants to propose its concept before Christmas.

The Commission president said that new cars should not emit more than 120g/km CO2 on average by 2012. "The automotive industry likes to say that this limit is difficult to achieve, but it is possible. The limit is applied to vehicle fleets, not to individual models."

Barroso was also sympathetic towards efforts to introduce a speed limit on German motorways. He said it is clear that speed limits mean fewer greenhouse gases are emitted.