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Postal liberalisation: Germany's Deutsche Post files complaint with the European Commission

On 11 June 2008 Deutsche Post filed a complaint with the Commission against the Dutch government's decision to delay the opening of its mail market. According to the statement from Deutsche Post, the Dutch government's decision not to end the existing mail monopoly as planned on 1 July 2008, but to extend it "indefinitely" creates a "competitive advantage for Post TNT of the Netherlands". Under the EU's newly adopted Third Postal Directive, Member States are only required to carry out full liberalization as of 1 January 2011. But Deutsche Post argues that "under the European law, a member state may reserve the national postal market exclusively for one provider only if this approach plays an essential role in financing the universal service" – i.e. the obligation for postal operators to provide each and every citizen with mail collection and delivery services at least once a day, five days a week.
Dutch Junior Economy Minister, Frank Heemskerk, on the other hand insists that the Netherlands cannot go ahead with full market opening until "a fair playing field" exists in both Germany and the United Kingdom. He gives the "high" minimum salary imposed by the German government as an example (over which TNT has filed a formal complaint with the European Commission) and the fact that, contrary to its competitors, Deutsche Post enjoys a VAT exemption on 40% of its operations as proof that the German postal market is still far from offering a level playing field. He also says he needs more assurances on the working and pay conditions for postmen in his own country before going ahead with the liberalization plans. But under pressure from MPs to set a date, he promised to "undertake maximum efforts" to completely open the postal market by 1 January 2009. The disputes highlights the difficulties linked to the practical implementation of new EU rules on the opening up of European postal markets to competition. In the UK – one of the few countries where full liberalization has already taken place – a recent report commissioned by the government found that the liberalization of the UK postal service has produced "no significant benefits" for either households or small businesses. The report, carried out by an independent panel and published in May, further warns that the current situation poses a "substantial threat" to Royal Mail's financial security, and thus, to the continued provision of the universal service. A final report is due to come up with ideas for measures to provide Royal Mail with a "stable financial future" later this year. The UK postal regulator Postcomm has suggested that Britain should follow Sweden's example in allowing the partial privatization of Royal Mail, but trade unions point to the "massive" job losses and "destruction of working conditions" that took place in Sweden when it liberalized.