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Europe Daily Bulletin No. 7660
Contents Publication in full By article 19 / 39
GENERAL NEWS / (eu) ep/postal services

Members voice concern about the future of universal service, which must be maintained - Monti reiterates Commission's commitment to guarantee it

Strasbourg, 21/02/2000 (Agence Europe) - With its adoption, last Friday in Strasbourg, of a resolution on postal services tabled by Konstantinos Hatzidakis (EPP, Greece) on behalf of the Committee on Regional Policy he chairs, the European Parliament asked the European Commission to forward to it various feasibility studies on the foreseeable economic and social impact of the liberalisation of postal services, and insisted on being fully involved in all phases of the legislative procedure for revision of the 1997 directive in this area.

During debate, Swedish Conservative Per Stenmarck recalled that under the 1997 directive the Commission was due to make new proposals before the end of 1998 on further liberalisation in the postal services sector, and he delayed the regret in their presentation. French Socialist Marie-Hélène Gillig highlighted the postal services' contribution to social cohesion and voiced opposition to a brutal acceleration of liberalisation, reiterating her attachment to the European public services. While welcoming the measures taken recently by the Belgian Government to liberalise the postal services, Belgian Liberal Dirck Sterckx recognised the usefulness of the social link the postal services represent, notably for the elderly. Marie Anne Isler Béguin (Greens, France) recalled that the Commission had undertaken to guarantee the durability of universal service and argued for maintenance of this "local public service that is a Community acquis and must remain so". She also stressed the risks of liberalisation for employment in a sector that employs 1.7 million in Europe. "The interests of giant corporations must not be the only ones taken into consideration", said German Helmuth Markov (PDS), adding that any significant price increases like those that followed liberalisation in Sweden were to be avoided. "If the Commission had convincing elements on the usefulness and feasibility of liberalisation it would already have presented them", observed Georges Berthu (UEN, France), arguing for continuation of the present situation. "We are not trying to defend a monopoly", he said, explaining the necessity of the public service given the size and diversity of French territory, and adding that other countries have other realities and can make other choices. Alain Esclopé of the French Hunters (EDD) said that, at present, with the 1997 directive and the French law on the 35-hour work week, the public services were shrinking everywhere, leading to the shutdown of post offices and an acceleration of the flight from rural regions. "The postman is not only a distributor of mail but often the only social link", he observed, criticising Europe for not showing an interest in its most isolated and least favoured citizens. John McCartin (EPP, Ireland) pleaded for common European regulations and deemed insufficient the present state of liberalisation in Ireland. He also brought up the problem of competition being hindered by investments by the German postal services on the liberalised market in the Netherlands. Greek Socialist Emmanouil Mastorakis commented that the 1997 directive guarantees the quality of universal service and at a price accessible to all and said there was a need to study the effects of liberalisation at the level of each Member State: "The British reality does not correspond to the Greek reality, with this country's numerous isolated islands", he stated. And the MEP concluded: "Liberalisation must not mean the death of those who are liberated!" German Christian Democrats Alexander Radwan and Bernd Posselt argued in favour of liberalisation, which can give postal services a chance to adjust to new technological realities, while noting that limits need to be set nonetheless. Esko Seppänen (GUE/NGL, Finland) said the postal services were not a traditional enterprise but provide a social service and that "competition rules cannot apply to human contacts". While mentioning the consequences of a loss of services for the Scottish islands, British Conservative John Purvis suggested an alternative in the form of calls for bids launched by local or regional authorities to provide service on the basis of quality criteria responding to social needs. Noting that it is indispensable to maintain post offices in small rural communities in Scotland, British Liberal Elspeth Attwooll acknowledged that these realities have to be taken into account and an affordable universal service maintained.

Commissioner Mario Monti recalled that his colleague Frits Bolkestein would be presenting on Monday the Commission's guidelines in this area to Parliament's Committee on Regional Policy. In response to Mr Stenmarck, he explained that the delay in the presentation of the proposals was related to the internal difficulties the Commission experienced last year. These proposals will be presented, in accordance with the Commission's legal obligation and with a view to application in 2003 and they will take account of the feasibility studies that have been conducted, in particular on universal service, he said. The Commissioner observed that the quality of service has improved, especially cross-border service, and that the experience of the countries most advanced in terms of liberalisation (Mr Monti mentioned the Netherlands, Sweden and Finland) demonstrates that the quality of service is higher as a result of liberalisation measures. "This is not a matter of selling off quality", asserted Mr Monti, noting that the "culture of postal services is changing and this is not a bad thing". "We attach great importance to the universality of services", continued the Commissioner, stating that the objective must be to satisfy consumers' needs and "create a climate favourable to employment, and not the opposite". "We believe universal service is a pillar. On Monday, my colleague will offer you other guarantees along these lines", he added. Mr Monti then explained that, usually, just before liberalisation of a sector, there is a loss of jobs and then the situation stabilises with the arrival of new operators, before going on to show a marked creation of jobs. For postal services, the first phase is already under way and job losses are linked to new technologies much more than to liberalisation. "Mr Bolkestein and I are aware of the fact that studies are not always satisfactory, but they give sufficient elements" for the adoption of new guidelines, declared Mr Monti. He deemed interesting the idea put forward by Mr Purvis for an inverted call for bids. Mentioning the competition aspects, the Commissioner stated: "We do not want the disappearance of state monopolies to lead to uncontrolled mergers creating dominant positions." And he recalled that the Commission has been vigilant in the case of cross subsidization concerning Deutsche Post, about which it has just received a response from the German Government.

Improvement of competition and universal service are not antinomical, says Bolkestein

Appearing on Monday before the EP Committee on Regional Policy (chaired by Konstantinos Katzidakis, EPP, Greece), Commissioner Frits Bolkestein announced that he would present in the first half of this year his proposal for revision of the 1997 directive on the liberalisation of postal services. He is of the view that there is a need to go further in liberalisation of the sector, and in particular to ensure a separation between regulator and operators.

According to the European Commission's recent studies, "gradual opening of the market is possible and private operators can enter the market without calling universal service into question", he stated, adding that consumers want postal services to be open to competition. "We will define clear guidelines and a timetable for achieving a gradual opening of the sector."

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