Governments to lock horns over post plan

Date: 14/12/00

By Peter Chapman

GOVERNMENTS are set to clash over the future of the EU's highly protected postal markets next week as the French presidency makes a long-shot bid to forge a deal among member states.

Diplomats warn that the chances of an accord before France steps down from the Union helm are slim as the gulf begins to widen between countries which are keen to accelerate liberalisation of the sector and others which fear this would put thousands of jobs and 'universal service' deliveries to remote rural areas at risk.

On the negotiating table at next Friday's (22 December) meeting of telecoms ministers will be Internal Market Commissioner Frits Bolkestein's proposals to open an additional 22% of EU postal markets to competition by 2003.

The Dutch Commissioner originally wanted to lower the weight limit for mail which member states could reserve for national post offices from 350 to 50 grams. He also wanted to open up the direct 'junk' mail market to competition for items larger than 50 grams and to liberalise completely the first leg of cross-border deliveries.

But France, Spain, Portugal, Greece and Italy are leading the fight in favour of a less ambitious proposal, pushing for a 150-gram limit for all types of mail.

In the opposing camp are the Scandinavian member states, along with Germany, Austria and the Netherlands, which support the Bolkestein plan. These countries have already liberalised, or are in the process of opening up much of their markets and want fellow member states to do the same.

The UK says it is still undecided. British sources said they would be "content" with 150 grams, but added that the government was seeking the advice of its new postal regulator to see whether a lower limit might also be acceptable.

But diplomats say opinions vary so widely that liberal member states are unlikely to agree a deal until after Sweden takes over the EU presidency in January. The Swedes have the Union's most open mail market, and officials say Stockholm is more likely to steer member states towards the Bolkestein proposals.

Supporters of a less ambitious liberalisation plan were, however, expected to receive a boost by the European Parliament this week when the assembly gave the proposals a formal first reading today (14 December).

MEPs were expected to back the stance taken by the Parliament's transport committee, which voted on the issue last month. It called for a 150-gram weight limit for the letters market monopoly and rejected calls for a date to be set for full liberalisation from its rapporteur, German Christian Democrat Markus Ferber. The committee also said the 150-gram limit should apply to direct 'junk mail' and to the first leg of outward-bound cross-border mail.

Governments are set to clash over the future of the EU's highly protected postal markets as the French Presidency makes a long-shot bid to forge a deal among Member States.