WRITTEN QUESTION E-0585/02

by Jacqueline Foster (PPE-DE) to the Commission

(5 March 2002)

Subject: Postal services

The EU postal sector suffers from very little real competition between operators. The national monopolies completely dominate their home markets. Users, and indeed consumers, normally have only one service provider to turn to. In the absence of liberalisation and true competition, market mechanisms are, with few exceptions, prevented from creating downward pressure on prices for basic postal services.

The difference in prices for the most basic postal services in the EU is quite striking. German consumers pay 223 % what Spanish consumers pay for a similar service (20 gramme letter). In Germany, the standard rate price for a 20 gram letter is EUR 0,56. Germany's population density is 230 inhabitants per square km. The corresponding figures for Spain are EUR 0,24 and 78 inhabitants per square km. Differences in the EU with regard to population density do not explain price differences. Furthermore, it should be noted that the German postal operator, Deutsche Post, has announced that it would like to raise its letter rates.

Without real competition between postal operators in the EU, it is impossible for consumers to assess whether what they are paying for basic postal services is justifiable. The significant differences in letter rates in the EU clearly indicate that consumers in certain Member States are being overcharged. Since the Postal Directive sets out to provide EU citizens with postal services at affordable prices as one of its main priorities, it appears that the EC is failing to achieve its aim.

Can the Commission explain what it is currently doing and what it intends to do in the future in order to tackle the problem of letter rate differentials in the EU and the underlying causes of those differences in order to ensure that consumers are not being overcharged?

Joint answerto Written Questions E-0585/02 and E-0586/02given by Mr Bolkestein on behalf of the Commission

(23 April 2002)

As indicated in the answer to written question E-0584/02 by the Honourable Member, under the Postal Directive(1), Member States are obliged to ensure that tariffs for postal services within the universal service are affordable and geared to costs. Overseeing the application of these requirements is primarily the responsibility of the Member States.

In order to ensure compliance with these principles, the Commission continuously monitors the evolution of postal tariffs in the Member States, and would intervene, if appropriate, either on the basis of the Postal Directive or on the competition rules.

Introducing a system for comparing postal tariffs across the Member States similar to the one that the Commission currently maintains for car prices, does not seem to be warranted at present.

Since postal tariffs are regulated by the Member States themselves, price comparisons would reflect the different regulatory approaches taken in the various Member States to a large extent. Price differences resulting from administrative pricing decisions would neither provide any information about the competitive situation in various markets, nor disclose suspected breaches of the Community competition rules. Considering the fact that, in most Member States the incumbent postal operators benefit from wide-ranging postal monopolies, there is not yet a functioning internal market for postal services. A system of price comparisons would therefore not make it any easier for the Commission to tackle internal market distorsions.

In conclusion, the Commission considers that its current price monitoring system, and its action on individual cases, are sufficient to ensure that prices are affordable and that the consumer is not overcharged.

Finally, the Commission expects that the proposed legislative measures to increase competition in the postal markets will gradually provide a downward pressure on postal tariffs and work towards a reduction in price differences.

(1) Directive 97/67/EC of the Parliament and of the Council of 15 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service, OJ L 15, 21.1.1998.