Competition in Spain could shake up Correos
To be fair, it must be pointed out that Correos does face tremendous difficulties in some areas, particularly new urbanisations, where road names have not been assigned nor houses numbered. Almost every day there is news of another mayor and his cronies in the town hall approving more developments which will vastly increase the populations of their areas. However, it doesn’t seem as if Correos ever gets any more staff. Now the state monopoly could be in for a big shake up. The European Commission has proposed changes in postal services by applying strict competition rules.
Countries such as Britain, Sweden and Finland, have already opened their postal sectors to competition. Others, including Spain, have not. Now the Commission says its time for the rules to apply to everyone. An official statement explains: “The Commission considers that because they are an essential vehicle of communication and trade, postal services are vital for all economic and social activities… the competition rules of the EC Treaty apply to the postal sector.” Cosy state monopolies and restrictive practices look to be in danger, although action would have to be ratified by the European Parliament.
“Member states are neither to enact nor maintain in force any measure contrary to the rules contained in the Treaty with regard to competition.” The EU aim is to support the competitiveness of the European economy in an increasingly competitive world and give consumers more choice, better quality and lower prices. “The traditional structures of some services of general economic interest, which are organised on the basis of national monopolies, constitute a challenge for European economic integration.
This includes postal monopolies, even as these are justified, which may obstruct the smooth functioning of the market, in particular by sealing off a particular market sector.” Consumers are likely to welcome the Commission’s moves to force competition into a vital service that clearly isn’t working properly in the many areas of Spain that have seen significant increases in the population over a relatively short period.
It was reported in November that the Spanish government was considering the proposals and that private postal operations might be able to use the Correos network to offer their services as competition was allowed. However, in competitive markets, prices can go up as well as down. Profit-driven businesses love delivering mail in cities and dense developments. No-one is interested in taking a birthday card to a person living in an isolated home up a long mountain track.
