Brussels to probe Royal Mail privatisation

Article reports that competition officials in the European Commission were expected to open a probe into the UK government’s plans to privatise Royal Mail in the summer of 2011.

The move came amid growing doubts about whether the UK government coalition would be able to sell even part of the state-owned postal operator before 2013 because of Royal Mail’s deteriorating finances.

The European Commission scrutiny would determine whether the UK proposals met European Union state aid guidelines. EU competition officials were unlikely to complete their probe until the start of 2012 at the earliest.

ESO: Background information: Brussels clears aid to Royal Mail http://www.europeansources.info/record/brussels-clears-aid-to-royal-mail/

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