The European Commission today proposed to throw open the €90 billion EU postal market to fullcompetition within three years, while simultaneously protecting the universal service provision.
Postal markets in the EU have gradually been deregulated over the past decade, but the newproposal, if accepted by 25 member states, would abolish mail monopolies by opening up tocompetition the so-called ‘reserved area’ – all post under 50 grams.
The EU executive argues that competition from new entrants would see more reliable andefficient services and create jobs in new postal companies and industries serving the sector. “Withfull market opening in 2009, we can look forward to more innovation, better services and improvedcost-efficiency. Without it, EU postal markets will be increasingly unable to meet the challengesof the communications revolution,” said Charlie McCreevy, the EU’s internal market commissioner.
But the Commission may encounter difficulties getting what amounts to an amendment of its1997 postal directive through the European Parliament and Council of Ministers. Most member statesare reported to disagree with details of the proposal. Some countries, such as France, want theirnational postal operators to be compensated for losing the monopolies.
Five member states fully back the Commission’s plan, however: Germany, the Netherlands, theUK, Finland and Sweden. They claim to represent 60 percent of postal mail volume in Europe and saythey are ready for full market opening in 2009.
Peter Bakker, CEO of privatised Dutch postal service TNT, said: “We are demonstrating in ourhome market and abroad that in postal services external threats are turned into businessopportunities, opportunities to create new services by being innovative, to improve efficiencylevels and to develop better services that respond to customers’ changing needs.”
The EU’s 1997 postal directive (97/67/EC) has gradually limited the scope of the reservedarea, which initially covered mail under 350 grams, amended in 2002 to 100 grams and reduced at thebeginning of this year to 50 grams. It set a final target for liberalisation in 2009, which had tobe confirmed by the Commission by the end of this year and resulted in today’s proposal.
The proposal maintains the current obligations on member states to ensure a high-qualityuniversal service comprising at least one delivery and collection five days a week for every EUcitizen.
Affordability of postal services is ensured by measures outlined in the proposal, as is thepossibility for member states to impose a uniform tariff for single piece tariff items such asconsumer mail .
In the event that remaining net costs of providing universal service need to be covered,member states will be able to choose from a range of options – including state aids, publicprocurement, compensation funds and cost sharing.
Klaus Zumwinkel, CEO of Deutsche Post, said: “We are hopeful that the new directive providespostal operators with the full means to thrive in the fast-evolving communications sector.Liberalisation that allows healthy competition is the only way forward. We are ready to embrace it”.
