Tag: European Union

EU's McCreevy urges rapid implementation of postal directive

Posted by | Jun 24, 2008 | |

European Union internal market commissioner Charle McCreevy has called for the rapid implementation of the European Commission’s postal directive into national legislation.

Speaking at a conference on postal market reform, he said member states’ complacency about the transposition period of the directive will only lead to delay.

The commissioner said the directive’s transposition will be a ‘test’ for member states and the commission as to whether postal reform is taken seriously.

The EU executive’s postal services directive, which liberalises the letter mail market, aims at opening up the European market in 2011. New member states have until 2013 to implement the legislation.

McCreevy said a level playing field was a ‘pre-condition’ for a true internal market of postal services, yet there are different interpretations over its definition.

‘In the worst-case scenario, the transposition period is used to invent creative market entry barriers. Barriers that are then concealed under a blanket which is inappropriately called a level playing field. Paying lip service to free markets and introducing protectionism through the back door is not acceptable,’ he said.

The commissioner stressed the smooth transition to a level playing field will require strong national postal regulatory authorities.

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EU bans postal monopolies from 2011

Posted by | Jan 31, 2008 | |

National monopolies for mail delivery in the European Union will be dismantled by 2011, with postal companies free to operate in any of the EU’s 27 countries – meaning the Royal Mail could face threats by European competitors on British soil.

Nine new EU countries plus Greece and Luxembourg will get the option of an additional two years to prepare for a full opening of the delivery of letters under 50 grams (1.75 ounces) – the last category where national postal companies face no rivals.

The plan was approved by the European Parliament last Thursday 31st January.

A universal public service ensuring every European gets at least one delivery and collection a day, five days a week will still be guaranteed and can be subsidized by governments if it loses money.

Postal services in the European Union handle an estimated 135 billion items a year, with an estimated turnover of 88 billion Euros (GBP 65billion) – around 1 per cent of the union’s gross domestic product. The sector employs more than 5 million people.

Full liberalization should lead to cheaper and more reliable mail deliveries, according to EU officials.

It could also force the Royal Mail to scramble to remain competitive against European services moving to Britain – and raises the possibility of a Royal Mail service operating on the continent.

An organization representing customers and competitors of the public postal operators across the EU called on the national regulators to prevent national monopolies from unfair tactics.

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Postal services: Commission welcomes the adoption of the EU Postal Directive

Posted by | Jan 31, 2008 | |

The European Parliament adopted the new Postal Directive last Thursday 31st January, giving its final political approval to EU postal reform. The vote confirms the broad political consensus on the way forward for opening EU postal markets to full competition. The Commission will assist Member States in implementing the new Directive and will take an active role in monitoring closely market developments to make sure that EU citizens and businesses obtain the benefits from high quality postal services foreseen by the Directive.
The Commission had adopted its proposal only 15 month ago. The text voted today by the European Parliament reflects the overall political agreement between the institutions and maintains the key elements of the Commission’s initial proposal, in particular: the accomplishment of the internal market of Community postal services via the abolition of the reserved area in all Member States; the confirmation of the scope and standard of universal service; reinforcement of consumers’ rights and upgrading of the role of national regulatory authorities; the offering of a list of measures Member States may take to safeguard and finance, where necessary, the universal service.

The final date for achieving full market opening is 31 December 2010, with the possibility for some Member States to postpone full market opening by two more years as a maximum and the inclusion of a temporary reciprocity clause applying to those Member States that make use of the latter transitional period. The new Directive is the final step in a long reform process that has already seen large areas of EU postal markets opened to competition, with very positive results.

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EU raises doubt over US trade deal

Posted by | Dec 23, 2007 | |

The high hopes that greeted a transatlantic trade deal ostensibly ending a dispute over online gambling have been almost immediately dashed by a look at the small print.

The European Union last week hailed an agreement with Washington to open up its warehousing, courier and testing service sector as compensation for closing the online gaming market to foreign companies last year.

The Office of the US Trade Representative (USTR) said the US Postal Service had allowed foreign competitors to handle overseas mail for 20 years. All it was doing was making the decision legally binding so it could not be reversed. Sensitive sectors such as domestic delivery and storage at ports and airports would remain closed.

An official added that this had “real value” and the EU agreed. “It gives the sector legal certainty. There is real value in binding the commitments,” said a spokesman for Peter Mandelson, the EU trade commissioner.

However, company officials and their lobbyists on both sides of the Atlantic are not so sure. “To us, this market was already liberalised and we have been operating in it for many years. It is too early to evaluate what long-term benefits this decision would have,” said a spokesman for the German courier.

World Trade Organisation officials said that it was up to the US and trading partners to agree adequate compensation between them. Washington would then notify the WTO of changes to US services commitments.

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