Tag: Deutsche Post

EC gives TPG space on German and UK postal markets

Posted by | Apr 11, 2006 | |

The European Commission (EC) wants to give TPG Post, the mail business of Dutch mail and logistics group TNT NV, and other foreign competitors an equal chance on the German and UK postal markets while abolishing the payment of value added tax (VAT) on mail services, the EC said on April 10, 2006. An exemption from VAT on these markets has been granted only to the former monopolists Deutsche Post and Royal Mail for most of their services. According to the European Commissioner Laszlo Kovacs (fiscal affairs), the VAT differences are not in line with the European Union (EU) competition rules.

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No further reductions planned in number of outlets of Deutsche Post

Posted by | Apr 10, 2006 | |

Deutsche Post says that it is not planning to reduce the number of branches it operates in Germany any further. The company currently manages around 12,000 post offices, having reduced the total figure by about 1,000 by the end of last year. The number of letter-boxes has also been reduced from 140,000 to 108,000, and is now to remain stable.

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VAT/Postal services – Commission launches infringement proceedings against Germany, the United Kingdom and Sweden

Posted by | Apr 10, 2006 | |

The European Commission has sent formal requests for information to the United Kingdom, Germany and Sweden on the VAT application of postal services. The United Kingdom and Germany exempt from VAT all or most postal services supplied by their former postal monopolies, while Sweden does not exempt postal services. Current VAT legislation is not yet adapted to the postal market that was liberalised by Directive 97/67/EC. The Commission, awaiting the revision of the current legislation according to its proposals , has to ensure a proper application of the VAT postal exemption in order to avoid distortions of competition between former monopolies and market entrants. The requests take the form of letters of formal notice, the first stage of the infringement procedure laid down in Article 226 of the EC Treaty. The Member States involved are invited to reply within two months.

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Deutsche Post rivals have no plans to lower parcel prices

Posted by | Apr 10, 2006 | |

German postal services provider Hermes has said that it will not alter its prices in response to the announcement last week that former monopolist Deutsche Post is to reduce postage on small parcels. Management at Hermes said that it saw no reason to change its successful strategy in its activities with private customers and declared that Deutsche Post’s decision to lower prices was proof that competition on the market existed. GLS, a subsidiary of UK group Royal Mail, also has no plans to lower its prices.

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German union demands 4.5% pay hike for postal employees

Posted by | Apr 7, 2006 | |

Germany’s Verdi trade union is demanding a pay hike of 4.5% for some 130,000 employes of the former state-owned postal company Deutsche Post AG, the union announced Friday. Verdi said it is aiming for a 12-month contract. Initial talks between the union and employers are scheduled for April 28. “The domestic economy has to gain momentum. If the employees are to spend more money, then they need a significant pay hike,” Verdi vice head Rolf Buettner said.

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