EU commissioner for internal markets Charlie McCreevy has proposed a law which will open up European postal markets to competition by 2009.
The directive will mean that post weighing less than 50 grams will no longer be monopolised by State-owned operators such as An Post.
Five European countries have already opened up their postal sectors to commercial competition, and Mr McCreevy has confirmed that all remaining EU members will have to comply by January 1st, 2009. "It is not fair that some markets are open and others are not," he said.
A spokeswoman for An Post said yesterday that Mr McCreevy's announcement does not come as a surprise: "We've been working towards the 2009 date for a number of years. It has underpinned our major change program. We need to become more efficient and flexible."
"Competition is already here," she said. "Any mail over 50 grams has been open to competition for a number of years now. We have every confidence that we can improve . . . and compete against the very best of them."
Under the terms of the directive, member states will be required to maintain a universal service obligation (USO), which means at least one collection and delivery five days a week at a reasonable price, for all citizens.
Until now, An Post has operated a monopoly on the universal service in this country and says the issue of funding Ireland's USO is a serious concern. - (Additional reporting PA)