Brussels, 09/10/2006 (Agence Europe) - Charlie McCreevy, the European Commissioner for the internal market, is expected to propose completion of the internal market for postal services by way of the opening up to competition of post less than 50 grams in weight by 2009 (EUROPE 9269). According to the draft directive obtained by EUROPE, the thrust of this liberalisation will focus on the way in which to fund the universal service where modalities are not developing. Two positions are developing on this case: some Member States support total liberalisation because they are the most advanced countries in this domain, other Member States, which have a traditional public operator, are advocating a more cautious approach and pose the question of funding for the universal service.
The Commission's proposal will get rid of the chapter on reserved services and replace it with a chapter on funding the universal service. It stipulates that “from 1st January 2009, Member States will not be able to accord or maintain in force special or exclusive rights for the establishment and/or provision of postal services”. Nevertheless, it lists a series of options available to Member States for financing the maintaining of the universal service. The Commission consider that these will in effect be “expected to have the freedom of deciding the method of funding best adapted to their specific situation”. Member States will therefore be able to use one or several of the following options: 1) ensuring the provision of the universal service by using a call for tender in compliance with European legislation on procedures for awarding public procurement contracts; 2) authorising the universal service provider to transfer all or part of the profits obtained in its business activities to activities deriving from the universal service (“internal cross-subsidies”); 3) having access to state aid in the form of compensation to operators in charge of providing public service obligations; 4) setting up a compensation fund for sharing net costs of the universal service among service providers and/or users.
Setting up a compensation fund was already planned in the first postal directive (97/67/EC). Administered by an independent body, this fund would only finance services covered by the universal service. Member States will subject the granting of authorisation enabling operators to provide postal services, to an obligation to financially contribute to the compensation fund. The Commission acknowledges, nonetheless, that in Member States, experience involving the compensation funds remains “very limited”, with one of the rare attempts having taken place in Italy. The Commission said that “with the disappearance of reserved services, it is probable that several Member States reconsider the need of a compensation fund”.
On the question of tariffs, the Commission explained that the prices of postal services be “linked to costs”. Nevertheless, Member States will also have the possibility of applying “a uniform tariff” for sending mail as a private individual throughout their territory and for post sent to the rest of the EU.
In a completely competitive environment, Member States will have to sufficiently allow universal service operators the freedom to adapt to competition while sufficiently controlling its activities to ensure effective competition. The Commission is leaving the choice up to Member States over what regulatory mechanisms are used for inspecting the activities of the traditional operators. As the minimum requires, it will get rid of the obligation imposed on Member States to ensure the follow up to crossed services the public operator needs for operating but it maintains rules on transparency of accounts by separating its activities from the universal service and its competitive activities. Member States will also be able to carry out ex ante inspections or use an ex post application of the competition law by the national competition authorities and/or the national regulators.
The Commission also considers that the role of the national regulation authorities remains “crucial”. It is introducing amendments to guarantee the independence of the national regulators, confirm the right of an operator to appeal against decisions taken by these bodies and facilitate cooperation between regulators at a European level.
Total liberalisation of the postal sector will not harm the right of Member States to organise the positioning of post boxes in public places, the emission of postal stamps and sending out mail as part of legal or administrative procedures. Similarly, it will not prevent the continuation of providing certain free services for the blind and partially sighted.
Finally, the legislative proposal extends by one year (from two to three years) the period for reporting on implementation of total liberalisation of the postal sector. The Commission is expected to present its first report by 31 December 2011 at the latest.
The European legislation on the postal sector is composed of two directives. Directive 97/67/EC establishes common rules for the development of postal services and makes a first reduction in the scope of public monopoly. It defines universal service as being all measures taken by Member States to ensure that there is “at least one collection and one distribution to the home of every legal or natural person” for “all working days and no fewer than five days per week”, except in exceptional geographic conditions or circumstances. Amending Directive 97/67/EC, Directive 2002/39/EC continues with opening EU postal services up to competition. It sets at 1 January 2003 and at 1 January 2006 the liberalisation of mail above 100 and 50 grams respectively.
In the EU, the economic weight of the postal sector was around $90 billion in 2004. Nearly 90% of all mail is despatched by companies rather than by individuals, with segment “B to C” accounting for 62% of the overall amount. A major employer, this sector employs around 5 million people. It is subject to the influence of several factors that require rapid developments such as the change in customer needs, computerisation and the introduction of new technologies.
Presentation of the European Parliament plenary session (11 and 12 October 2006)