Those people who would just love to take Fido to Ibiza on holiday look set to have their dreams come true after the EU today reached a deal to simplify rules on pet movements, and brought the arrival of pet passports a step closer.

New regulations envisage that pets moving between EU member states must carry an electronic microchip for easy identification, or a tattoo for a transitory eight-year period.

"This is excellent news for pet owners like myself," said European health and consumer affairs commissioner, David Byrne. All animals must already be vaccinated against rabies and this information will be included in a pet passport. Many European pet owners choose to leave their charges at home when they go abroad because variations in national rules across the EU make travelling with animals too complicated.

"Today marks a significant step towards harmonisation of the rules governing the movement of pets within the EU, a step that was made possible by dramatic advances made in our fight against rabies," Mr Byrne added in a statement.

The deal was reached late yesterday between the European parliament and EU ministers. Both groups are now expected to put a final rubber stamp on the bill, after which it can become law. Due to their rabies-free status, three countries - Sweden, Ireland and Britain - succeeded in keeping extra controls on pet movements until 2008. Pets entering these nations from the rest of the EU will be tested to ensure the vaccine has worked.

The new legislation will also affect pets entering the EU from third countries, with different rules to apply depending on the rabies-free status of the country of origin.

Cats and dogs coming from neighbouring countries such as Norway and Switzerland with no major rabies problem would have the same freedom of movement as their European cousins. But pets coming from countries where rabies is endemic would be tested for rabies three months before entering the EU and quarantined before they can move to Ireland, Sweden and Britain.