Brussels, 22/12/2000 (Agence Europe) - The problem of the liberalisation of postal services monopolised discussions of the Telecom Council, which met on Friday under the chairmanship of Christian Perret, French Industry Minister. The ministers discussed a compromise tabled by the Netherlands, following the lack of success of the Commission's proposal to certain Member States. In the evening, it seemed unlikely that they would manage to break the deadlock, as opinions were very contradictory mainly regarding the notion of universal service and the social consequences of liberalisation.
The Commission's proposal aims to open up 20% of the European postal market to competition. Today only 3% is open. To achieve this, it is organising, during a first stage, the liberalisation (2003) of postal services for letters weighing over 50 grams (the current limit being 350 grams), and for less than 50 grams when the price is over 2.5 times that of a standard letter (the current limit being 5 times the price), as well as liberalisation of all outgoing mail towards another Member State and all express deliveries. During a second stage set for 2007, liberalisation would continue on the basis of a new proposal to be presented before end 2004. During the Telecom Council of 3 October, this proposal, supported by Commissioner Bolkestein, came up against the opposition of six Member States (France, Italy, Spain, Portugal, Greece, Luxembourg), which feared it would deal a serious blow to the universal service. Six other countries backed the Commission's proposal: the Netherlands, Finland, Sweden, Denmark, Germany and Austria. Three countries remained in the background: the United Kingdom, Belgium and Ireland. On 14 December, the European Parliament again snubbed Commissioner Bolkestein by proposing to clear State monopolies for all mail weighing less than 150 grams, and fixing the date of the second phase at 2009. This would involve additional market opening limited to 6% from 2003 on. The proposal was supported by the Socialists, the Greens and two thirds of the EPP.
The compromise proposal submitted on Friday by the Netherlands sets the aforementioned liberalisation limits at 100 grammes and 3 times the price from 2003, then 50 grammes and 2.5 times the price from 2005, total liberalisation being scheduled for 2008. It received the approval of six Member States: Denmark, Finland, Sweden, Austria, Germany and Belgium. This last country, which remained neutral in October, found the Dutch proposal "attractive", Belgian minister Rik Daems considering before his colleagues that "an agreement on liberalisation should be found, likewise the setting of a debate for total liberalisation, but not at any price". Frits Bolkestein declared during the debates that "the opening up of the postal services market, a priority of the Lisbon Summit, guarantees the universal service in the sense that it is gradual". He added that "mechanisation in the sector, notably by the appearance of e-mail, confirms the urgency of adapting the regulatory framework.
French Presidency's compromise appears insufficiently "liberal" for some Member States
Given the failure of the Dutch proposal, the French Council Presidency assumed its responsibilities and presented, at the end of the afternoon, a draft compromise of its own invention. The main element was the lack of a final deadline for total liberalisation. It appeared obvious in the earlier debates that some Member States do not accept the final deadline. At the same time, the Presidency reduced the requirements of liberalisation for the initial phase.
In detail, the Presidency's compromise provides for the rate of liberalisation to reach 10% in 2003. It plans to bring postal services for mail of over 150 grams into free competition and, below this limit, letters whose price is at least three times that of standard letters. For mailings, the indications are 199 grams and 2.5 times the price. In 2004, the decision should be taken to pursue liberalisation in 2006. Finally, in 2008, a decision is expected for the year 2009 to reconcile an operational internal market with a universal quality service. The Netherlands, Denmark, Finland, Sweden, Austria and German opposed this proposal. France is supported by Greece, Portugal, Spain, Italy, Luxembourg and Ireland. Britain has reservations.
During the evening, the Council left the issue to allow all delegations time to reflect, and it tackled specific points regarding telecommunications (see the following article for the only decision taken). It planned to return to the subject of postal services liberalisation later on.