| Author (Person) | Thomson, Ian |
|---|---|
| Publisher | ProQuest Information and Learning |
| Series Title | In Focus |
| Series Details | 16.1.01 |
| Publication Date | 06/01/2001 |
| Content Type | News, Overview, Topic Guide | In Focus |
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The European Commission's proposal for a Directive to further liberalise postal services in the European Union has come across considerable opposition from the European Parliament (first reading vote on 14 December 2000) and the Council of the European Union (discussion in the Telecommunications Council, 22 December 2000), reflecting the division of views amongst stakeholders (including public and private postal service operators, business and general public representative organisations and national governments) on the issue. Background The postal sector is of major economic and social importance in the European Union. A recent United Kingdom: House of Lords: Select Committee on the European Union report suggests that EU postal services deal with approximately 135 billion items a year. This generates a turnover of about 80 billion euro or about 1.4&percent; of the EU GDP. About two-thirds of the turnover is generated by mail services, including the reserved area. The reserved area is a set of mechanisms created to ensure that a universal postal service is provided at a standard cost to all geographical parts of a country and to all users. The remaining one third of turnover is generated by parcels and express services. As part of the overall programme to create a Single Market between the Member States of the European Union, and encourage the liberalisation of various industrial sectors, the European Commission launched a range of initiatives during the 1990s to advance the development of the single market for postal services, by creating further competitive mechanisms. A Green Paper issued in 1992 (COM (1991)476 final (11.6.92) [only the Executive Summary (MEMO/92/34) is available on the Internet] started a period of consultation. The European Commission's aim is to implement the Single Market for postal services, by opening up the sector to competition in a gradual and controlled way, within a regulatory framework which assures a universal service. The improvement of the quality of service, in particular in terms of delivery time and affordable tariffs are fundamental aspects of this policy. It is felt that greater competition in the sector will achieve that objective, but that safeguards are needed to protect the concept of the universal service. The consultation period in the early 1990s led to the adoption of a Council Resolution [PDF] of 1994 on the development of Community postal services (OJ C48, 16.2.94, p3-4) and the eventual adoption of Directive 97/67/EC of the European Parliament and of the Council of 15 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service, with a date of implementation of February 1999 (OJ L15, 21.1.98, p14-25) The 1997 Directive:
European Commission: DG Internal Market: Postal Services In 1997 the European Commission also issued a Notice [PDF] on the application of the competition rules to the postal sector and on the assessment of certain state measures relating to postal services (SEC(97) 2289) The Notice was adopted by the Commission on 17 December 1997, following public consultation. Further background information on the subject can be found in:
The second Postal Directive proposal The 1997 Directive was recognised as a first step towards the process of a gradual and controlled opening of the postal sector to competition. The European Commission was expected to bring forward further proposals in 1998 following the analysis of the results of detailed research studies as required by the 1997 Directive. In the event the new proposals were considerably delayed both by the divisions of opinion amongst stakeholders on the issue of liberalisation and the turmoil in the European Commission in 1999. All stakeholders are said to be in favour of liberalisation: the divisions come in the speed and extent of the reforms. In the broadest of terms stakeholders in favour of further liberalisation tend to include the commercial companies who provide mail and delivery services, and commercial organisations who intensively use the postal service such as magazine publishers and mail order and direct sales' operators. More suspicious of the proposals for liberalisation include consumer groups, trade unions representing workers in the existing national post office organisations and the majority of existing public national post office organisations. There is a division of opinion amongst Member State governments: interestingly, France, the EU Presidency country for the period July-December 2000 is considered to be one of the countries most suspicious of a radical and rapid liberalisation, while Sweden, the EU Presidency country for the period January-July 2001 is an enthusiastic proponent of such liberalisation, having already achieved it in Sweden. The governments of Germany, Austria, The Netherlands, Denmark, Belgium, Sweden and Finland are the proponents of liberalisation. The detailed views of the various stakeholders can be found in the external links noted below. It was only in May 2000, following strong encouragement for further liberalisation measures in the European economy agreed by the EU Member States at the European Council [PDF] in Lisbon, March 2000, that the European Commission adopted a proposal [PDF] for a Directive to amend the existing 97/67 EC Directive in order to further open to competition the European market for postal services (COM (2000)319 final (30.5.00). The proposal is currently passing through the EU's policy making process, by the co-decision procedure. The main elements of the Commission proposal are:
European Commission: DG Internal Market: Postal Services The European Commission's Directorate General for the Internal Market provides much useful background information on the proposal on its Proposed evolution of the regulatory framework pages on the web. Also of interest is the Press Release (IP/00/541) issued when the proposal was adopted by the European Commission in May 2000. For the full existing, and subsequent, legislative history of the proposal see: On the 13 December 2000 the European Parliament held its its first reading debate on the Commission proposals based upon a report from rapporteur Merkus Ferber, MEP. Despite Mr Ferber himself being a strong proponent of postal liberalisation, and a speech by European Commissioner Frits Bolkestein arguing strongly for the proposals, there was considerable opposition from MEPs. The further opening up of the postal market in the Community should, they said, be much more gradual and controlled than the Commission was proposing. A summary of the debate is available. European Commission Bolkestein expressed his disappointment that the European Parliament voted to reduce drastically the share of the postal market to be opened up to competition and to delay the introduction of more competition by two years. On the 22 December 2000 the Telecommunications Council (PRES/00/495) held a debate on the proposal but failed to reach a Political Agreement, reflecting the disagreement amongst Member States. They have asked the Permanent Representatives Committee to continue work on the file. Further negotiations will take place within and between the EU Instititions to secure a compromise solution during 2001, no doubt heavily lobbied by the various stakeholders. Further information within European Sources Online: European Sources Online: Topic Guide European Sources Online: European Voice OECD: Economic Survey: Sweden, 1999 OECD: Economic Survey: Greece, 1999 Business Guide to EU Initiatives Further information can be seen in these external links: European Commission: DG Internal Market European Commission: DG Competition Organisation for Economic Co-operation and Development United Kingdom: House of Lords: Select Committee on the European Union United Kingdom: Postal Services Commission (Postcomm) United Kingdom United Kingdom: Department of Trade and Industry Association of European Public Postal Operators (PostEurop) European Federation of Public Service Employees (Eurofedop) Federation of European Direct Marketing (FEDMA) European Express Association (EEA) European Mail Order Trade Association (EMOTA) The European Consumers' Organisation (BEUC) Union Network International: Postal and Allied Services Sector (UNI-Europa) United Kingdom: The Post Office Universal Postal Union BBC News: FT.com Further and subsequent information on the subject of this In Focus can be found by using 'Search ESO' or 'Advanced Search' in European Sources Online by inserting 'postal liberalisation' in the keyword field. Ian Thomson The European Commission's proposal for a Directive to further liberalise postal services in the European Union has come under considerable opposition from the European Parliament and the Council of the European Union. |
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| Subject Categories | Business and Industry, Internal Markets |
