EC Makes Proposal for Further Liberalization of Postal Services by 2009

The European Commission has put forward a proposal to open EU postal markets fully to competition by 2009. Full market opening will mean that national operators will no longer have a monopoly on mail below a certain weight (currently a maximum of 50 grams), known as the 'reserved area'.

The proposal maintains the current obligations on Member States to ensure a high-quality universal service comprising at least one delivery and collection five days a week for every EU citizen. The Member States will be able to choose from a range of options, including, for example, state aids, public procurement, compensation funds and cost sharing. It will be for Member States to decide which model best suits their needs.

Postal Services in the EU are covered by the 1997 Postal Directive. This created a regulatory framework which guarantees citizens a universal service, while gradually limiting the scope of the reserved area.

It included a requirement that the Commission should provide periodic reports on its implementation, and, before the end of 2006, confirm whether the 2009 date remained appropriate. The Commission is now proposing, by means of a further amending Directive, that the date should be confirmed. A number of Member States have already opened up their market to full competition or have firm plans to do so before the 2009 target date.

The Directive aimed at ensuring the best possible service through a gradual opening of the market, with a final target set for full opening in 2009.

The key question for most of the universal service providers remains the financial burden caused by this liberalization of postal services.  Many of the postal operators worry that they will not be able to survive without some kind of financial compensation.

Internal Market and Services Commissioner Charlie McCreevy considers the date of 1 January 2009 to be quite realistic, regardless of the fact that until now only a few countries – Great Britain, Sweden, Germany and the Netherlands – have opened their markets to more competition.

‘’In preparing the proposal, we have put consumer and user needs first. With full market opening in 2009, we can look forward to more innovation, better services and improved cost-efficiency. Without it, EU postal markets will be increasingly unable to meet the challenges of the communications revolution. Market opening plays a crucial role in the long term viability of the sector and the employment it generates", says McCreevy.

Some countries are still skeptic regarding this whole process, and that includes more traditional protective countries like France and Italy. French postal workers are even preparing a protest as an answer to the plan coming from Brussels.

 

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