Millions of pounds worth of unpaid parking fines have to be written off each year by councils unable to trace drivers of foreign vehicles, according to the Local Government Association (LGA).
Some councils have had to rip up thousands of parking tickets with one local authority - Brighton & Hove Council - being owed more than £750,000.
EU laws allows European vehicles to drive on UK roads for six months before having to register with the Driver and Vehicle Licensing Agency (DVLA) but the Government does not keep a record of the estimated three million entering the UK each year.
Currently the DVLA only records information about non-UK-registered vehicles when they are notified through offence reports provided by the police or from tip-offs from the public.
This means foreign vehicles are able to disappear within the system by going unregistered.
The LGA said this left town hall parking bosses facing an impossible task to chase down drivers for payments while laws in other countries mean British drivers parking illegally abroad can be tracked and chased.