The system has a steering wheel (3) for receiving a steering torque input, and for exerting a corresponding first adjusting torque on the steered wheels of the vehicle. The system further comprises sensors (17,18) which produce a signal representing the lateral dynamic state of the vehicle. A second adjusting torque can be applied to the steered wheels by an active steer reaction computation unit (23), in order to steer the vehicle on a curved path appropriate to the deviation of the produced signal from a reference signal calculated from the steering input. The system also produces understeer by suppressing the second adjusting torque, if understeer from stationary conditions results. The signal representing the lateral dynamics may be derived from the yaw rate and lateral acceleration of the vehicle.