The EU has agreed on a deal to share airline passenger details for the “prevention, detection and prosecution” of terrorist offences and serious crimes.
The Passenger Name Record (PNR) system, which was first proposed in 2007, means airlines must provide countries within the EU passenger data for flights entering or departing the union.
It will also allow, but not oblige, member states to collect PNR data concerning selected intra-EU flights.
Each member state will be required to set up a Passenger Information Unit, which will receive the PNR data from the airlines.
Luxembourg Interior Minister Etienne Scheider said: "The compromise agreed today will enable the EU to set up an effective PNR system which fully respects fundamental rights and freedoms.
"After so many years of debate, we have finally reached a deal."
The UK and Ireland have opted into this directive. Denmark is not participating.