The limits on the amount of liquids allowed on flights from EU airports will be lifted in 2010 provided new scanners are in place to distinguish liquid explosives from harmless substances, officials in Brussels said.
New technology that can tell the difference is being tested in the US, Britain and France, European Commission spokesman Jens Mester said.
"We are confident that using this technology at airports will be possible by 2010," Mr Mester said.
The strict rules were put in place across the 27-nation bloc in 2006 after a plot to blow up trans-Atlantic flights using liquid explosives was uncovered by British authorities.
The regulations have led to widespread confiscations, confusion and delays at airports. They limit passengers to carrying liquids in containers no bigger than 3.4 ounces, packed in transparent bags onboard planes.
The list of liquids restricted on flights includes soup, syrups, creams, lotions, oils, perfumes, sprays, hair and shower gels, shaving and other foams, pressurised deodorants, toothpaste and mascara, and water and soft drinks.
Mr Mester said EU countries have already agreed to abolish the restrictions on internal European flights and those leaving EU-based airports if the new scanners are up and running.
It is unclear whether the US and others would move to lift similar restrictions on liquids passengers can put in their carry-on luggage.
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