Bolkestein gives ground on post

Date: 01/06/2000

By Peter Chapman

SINGLE market chief Frits Bolkestein has delivered a watered-down proposal for liberalising more of the Union's postal market after a backlash from a hard-core of other Commissioners who warned that his original plans would threaten EU post services in rural areas.

However, he managed to push through proposals to open a further 20% of the post market to competition. This includes a requirement for member states to liberalise domestic letters markets by 2003 for deliveries above 50 grammes, or costing more than two and a half times the price of a standard stamp. The current limits are 350 grammes and five times the price of a stamp, with only 3% of the market open to private firms.

But he was forced to give ground on direct 'junk' mail, which he had initially wanted to open up fully from 2003. Instead, the full Commission agreed a compromise which would liberalise direct mail weighing more than 50 grammes, in line with the new proposals for the domestic letters market.

Bolkestein's plans are likely to face an even rougher ride when they are scrutinised by EU governments and MEPs. France has already dismissed them as unacceptable.

Single Market chief Frits Bolkestein has delivered a watered-down proposal for liberalising more of the Union's postal market after a backlash from a hard-core of other Commissioners who warned that his original plans would threaten EU post services in rural areas.