EU Mail Plan as of 2011

With an overwhelming majority, European parlimentarians backed plans for the final phase of liberalizing the mail delivery market, which would allow competition for letters of less than 50 grams as of January 1, 2011.

The 12 new EU countries will have an additional two years to prepare for liberalization.

Around a dozen member states are ready to forge ahead with more market opening, but the issue is contentious in many other countries.

Postal workers in some EU states have stopped deliveries and staged rallies against the plans.

The European postal sector was opened to competition a decade ago for the delivery of packages weighing more than 350 grams.

In 2003, the measure was extended to items of more than 100 grams and in

2006, to letters weighing more than 50 grams.

European Commission wanted earlier date

The European Commission had proposed to do away with state monopolies for the delivery of letters weighing less than 50 grams by 2009, while guaranteeing postal delivery services throughout each country.

The European Union's executive arm wants to build on the perceived success of Britain, Finland, the Netherlands and Sweden, which have already opened their postal market to competition.

It has forecasted few changes for consumers. However, it believes that new competitors would probably try to distinguish themselves from existing state-controlled post offices with lower costs and special services.

EU Financial Services Commissioner Charlie McCreevy earlier defended the plans for a full market opening by 2009. As the bloc's top internal market official, he said the industry would suffer if the market is not fully liberalized within the original timetable.

"Our proposal is based on sound preparation. It is not... based on ideological zeal," he said. "Experience with market opening to date has been overwhelmingly positive."

Communication revolution

McCreevy warned the European Parliament that postal services around Europe which fail to alter their business practices will lose out when new forms of communication, such as electronic mail, become even more widespread.

"It is common knowledge that a communications revolution is taking place," he said. "It poses a threat for those postal operators that fail to adapt."

McCreevy's plans for liberalization by 2009 had gained support from the European Commission, and EU members such as Germany and Britain, agreed that it would lead to a more reliable and better quality service driven by foreign competition in their postal markets.

The German national postal system, Deutsche Post, was already slated to give up its monopoly in 2008.

However, it fears a disadvantage if other countries are permitted to maintain their monopolies longer.

Bulgaria, Estonia, Finland, Sweden and the UK have currently opened their postal markets up completely.

The European Parliament wants to cushion the disadvantage for Deutsche Post and other countries which have already deregulated their markets. EU lawmakers said postal services in France and other countries who maintain their monopolies should not be granted access to the already liberalized markets.

France and Luxembourg, as well as other states, pushed for the delay, saying they need more time to prepare.

The EU began efforts to liberalize the market back in 1997 and first entertained McCreevy's 2009 plan in 2002.