Brussels, 23/03/2001 (Agence Europe) - The association representing private providers of postal services and their users, the "Free and Fair Post Initiative" (FFPI), as well as the International Road Transport Union (IRTU), this week welcomed the decision by the European Commission, which condemns Deutsche Post to a fine of EUR 24 million and the obligation to separate its parcel and letter services, in order to avoid crossed subsidies (see EUROPE of 21 March, p.12).
For the Free and Fair Post Initiative, this decision awaited since 1994 constitutes a significant step towards the establishment of a fair playing field for the postal sector in Europe. The Commission decision will set the line between what is allowed and what is not in the postal sector, however the FFPI is convinced that Germany is not the only Member State where similar cases are being examined and should be corrected. According to the British daily The Financial Times, the case of the Belgian Post office will also be in the line of fire. However the FFPI feels that an improvement in postal sertvices through decisions on a case by case basis, such as those adopted by the Commission (for Deutsche Post) is insufficient. We must set a deadline for the total liberalisation of postal services, assures the President of the Association, Philippe Bodson.
In agreement, the International Road Transport Union welcomed this decision on crossed subsidies that creates a significant precedent in favour of European competition. It called on the Commission to presently form a strong and harmonised position by clearly explaining that, supporting loss making companies with receipts from profitable operations is incompatible with the efficient functioning of any market. For the new head of the IRTU representative to the Union, Hubert Linssen, including the categorical rejection of the principal of crossed subsidies in the future White Paper on European transport policy could be a good starting point.