Madrid looks to reform state postal contracts

The Spanish government is looking to shake up the national postal market and reduce the dominance of Correos y Telegrafos, the public operator. Correos controls 93 per cent of what is ostensibly a deregulated market and has exclusive contracts to provide postal services to the state, its single biggest client, which accounts for 20.5 per cent of Correos’ annual turnover of more than 1.7bn euros. These contracts should actually be put out to tender on a cost and merit basis, the government has decided.