Bolkestein vows to deliver post package

Date: 30/09/1999

By Peter Chapman

NEWLY appointed Single Market Commissioner Frits Bolkestein is promising to deliver the plans for post liberalisation hatched by his predecessor Martin Bangemann.

Bolkestein, who has been given responsibility for the politically charged post dossier, told European Voice that the market was in danger of racing ahead of the regulators if the EU did not act soon.

He said public postal operators were desperate to move into the territory occupied by private parcel delivery firms such as US giant United Parcel Service, while private firms were demanding the same right to move into the public operators' protected markets.

Recent deals include a flurry of private sector acquisitions by German post office Deutsche Post ahead of its planned public flotation on the German market. The British Post Office also sent chills down the spines of private sector rivals when the UK government recently granted it greater commercial freedom, including the right to fund acquisitions without seeking special approval from government ministries.

Private firms have fought back by complaining to the European Commis-sion, claiming that public operators are misusing the cash they earn from their letters markets to fund these acquisitions. But they are also looking to Bolkestein to give them the right to take on their rivals in the market place.

The new Commissioner is expected to propose liberalising direct and cross-border mail and all letters weighing more than 50 grams by 2003, and setting a timetable for the total market-opening.

However, the Dutch internal market chief said he was not planning to risk the wrath of member states by proposing to move faster than had been envisaged by Bangemann before he left office.

He said the Commission would "slowly try to liberalise more in the future", but refused to say when he wanted all post monopolies to be eradicated.

The current EU post rulebook requires member states to end the public sector monopoly on letters weighing more than 350 grams. Bangemann had planned to unveil ambitious new proposals for further market opening last spring, but was forced to moderate his plans for a fast-track route to total liberalisation under pressure from member states which feared the impact this would have both on jobs and services, particularly in remote areas.

The compromise package which Bolkestein has inherited from Bangemann was itself put on ice following the mass resignation of the Santer Commission in March.

Alistair Tempest, director of European direct marketing lobby FEDMA, this week welcomed Bolkestein's promises to carry on where Bangemann left off. But he said the tough-talking Dutchman could still face opposition from reluctant member states which stalled Bangemann's earlier plans for swift liberalisation. "This is still a political hot potato. The French, Greeks and Portuguese to name but a few are not going to give in without a fight," he added.

Meanwhile, post policy experts at the Brussels-based European Express Organisation (EEO) say they are resigned to waiting until early 2000 for Bolkestein to unveil his proposals. "It is pretty clear that the limit will go down to 50 grams, but we do not expect the proposals before early next year," said the EEO's Rohan Malhatra.

Insiders say one factor behind the delay is President Romano Prodi's decision to shift responsibility for postal issues within the Commission from the former 'post and telecoms' department to Bolkestein's internal market directorate-general. Commission insiders say they do not expect the internal change-over to be completed until the spring of next year.

However, Malhatra said the delay in launching the proposed directive should not result in implementation of the new rules being postponed - provided they were approved in time by member states.

Newly appointed Single Market Commissioner Frits Bolkestein is promising to deliver the plans for post liberalisation hatched by his predecessor Martin Bangemann.