Fresh bid launched to free up post

Date: 14/01/1999

By Chris Johnstone

INDUSTRY Commissioner Martin Bangemann will next week attempt to win his colleagues' support for the principle of a fast-track opening of Europe's postal markets.

Bangemann will cite evidence contained in five studies on the postal sector to support his argument that speedy liberalisation would not threaten basic door-to-door letter deliveries and could offer the best long-term prospects for the sector to survive the challenge from electronic mail.

However, close advisers say Bangemann will also float the idea of offering countries which fear the consequences of liberalisation more time to open their markets.

Aides say that while the Commissioner favours a firm deadline for member states to open up letter and parcel deliveries to full competition, he has not completely ruled out a two-stage process.

The European Commission was supposed to deliver its suggestions for postal liberalisation after 2003 (the date when current cautious market opening moves expire) at the end of last year, but concrete proposals are not now expected until March. When they are unveiled, all eyes will be on France and Germany to see how they react.

France has traditionally been lukewarm about postal liberalisation, citing worries that nationwide deliveries might suffer if private companies were allowed to come in and cherry-pick the most lucrative segments.

There is also a question mark over whether Germany's new government will pursue the pro-liberalisation line adopted by its predecessor. Although officials in Bonn say there has been no change in policy since Gerhard Schröder's team came to power in October, industry-watchers believe there are signs that it might be more minded to support a public service sector against any threat of possible job losses. They point out that the national post office, Deutsche Post, has toned down its call for market-opening measures.

Deutsche Post insists, however, that it still favours an ambitious market opening, but only if its main European rivals in France, the UK and Netherlands are forced to abide by the same timetable.

The state-owned British post office, Royal Mail, this week stoked up pressure for a strong Commission initiative to boost postal competition throughout the EU by making its first overseas acquisition: German Parcel, the country's fourth-largest mail company.

However, the deal ran into immediate criticism from private express carrier United Parcel Service (UPS), which warned that it would lodge a complaint with the Commission.