Tag: Europe

European Union governments agreed to start local mail competition in 2011, two years later than Deutsche Post AG, TNT NV and other providers were seeking to expand into new countries.

Countries must open their markets to foreign competitors for delivering standard letters, in the compromise reached today at a meeting of national ministers in Luxembourg. Still, 11 of the 27 EU countries get two extra years, until 2013, to prepare their current providers.

The compromise won over France and other nations that opposed an earlier plan for competition in 2009. The initiative will end monopolies such as that of France’s La Poste in standard letters, which are two-thirds of the region’s 88 billion-euro (USD 125 billion) postal market, according to the EU executive agency.

Deutsche Post will continue to examine postal markets in Europe and elsewhere, Uwe Bensien, a spokesman in Bonn, said by telephone.

Letters up to 50 grams (1.8 ounces) are the final piece of the mail industry being opened, after a decade of phased-in deregulation. That business is more profitability than package or express delivery, according to the European Commission, the EU agency where McCreevy oversees internal market policy.

EU countries that allowed postal competition before the 2011 deadline include the U.K., Finland and Sweden. Germany and the Netherlands plan to follow suit Jan. 1.

Countries eligible for the extra two-year delay include Luxembourg, the country of half a million people whose service would be dwarfed by neighboring rivals, and Greece, with territory spread over hundreds of islands. Nine of the 12 countries that joined the EU since 2004 also gained the extra time. Estonia, Bulgaria and Slovenia will adhere to the 2011 deadline.

Portugal, holder of the EU’s rotating presidency, drafted the compromise in line with a European Parliament vote in July. The initiative still needs final approval by majorities in both the Parliament and the national governments, whose votes are weighted by country population, to become law.