MEPs head for clash over pace of postal liberalisation

Date: 24/02/2000

By Peter Chapman

EURO MPs from the assembly's two biggest political groups are on a collision course over the future of Europe's postal monopolies, before the Commission has even unveiled its plans to open more of the sector to competition.

The Socialist Group's postal affairs spokesman Brian Simpson has warned Single Market Commissioner Frits Bolkestein that he "would be sailing in very rough waters" if he called for a big reduction in the 'reserved' area which former monopoly post offices are allowed to keep to themselves.

Under existing EU rules, the former monopolies have an exclusive right to deliver mail weighing up to 350 grammes. Before the demise of the Santer Commission last year, former industry supremo Martin Bangemann had suggested reducing this 'reserved area' to a maximum of just 50 grammes by 2003 - and Bolkestein is widely expected to take the same approach when he launches his proposals for further market-opening later this year.

But Simpson says the Commissioner would win far more support if he proposed a more modest degree of market-opening, limiting the letters monopoly to post weighing up to 150 grammes. "If there were some compromise then they might get away with some liberalisation. People accept that we cannot stick with the status quo," said the British MEP.

Although the Christian Democrats are now the largest political group in the Parliament, with the Socialist Group in second place, Simpson claims there is broad cross-party support for a gentle introduction of competition in the post sector. "We have usually been together on this in the past - and of course, the Greek, Spanish and Irish conservatives want to keep as big a reserved area as possible," he said.

However, Simpson's opposite number on the Parliament's Christian Democrat benches, Markus Ferber, says he is in favour of an ambitious liberalisation plan - and will fight Simpson all the way.

"We are at the beginning of a battle. We are organising our troops," said the German MEP, adding: "Many people are lobbying for the monopoly postal operators. I am a lobbyist for the European consumer. I go for 50 grammes. It is a question of quality of service and the need to create a little bit of competition in a market that is, for the moment, only 1% liberalised." Ferber added that he favoured a complete liberalisation of cross-border and direct mail.

Despite their differences over the content of the proposals, MEPs on all sides of the political divide are urging Bolkestein to reveal his plans before delays start to hit the 2003 timetable for implementing new measures.

The Commission was originally due to unveil its plans for further liberalisation of the market at the end of 1998. "This is a reminder that if the Commission ran the EU's postal system then no letters would arrive on time," said Simpson.

Euro MPs from the assembly's two biggest political groups are on a collision course over the future of Europe's postal monopolies, before the Commission has even unveiled its plans to open more of the sector to competition.