EU to delay full competition for postage

The European Parliament voted today to delay by two years a plan to open European Union postal markets to full competition.

The European Parliament voted today to delay by two years a plan to open European Union postal markets to full competition.

The assembly voted by 512 to 155 on a measure that will end a monopoly of delivering letters weighing up to 50 grams from 2011 onwards, two years later than the European Commission had proposed.

"We hope the Council (of ministers) will follow the parliament's line on this," said Markus Ferber, the German centre-right lawmaker who steered the measure through the assembly.

Parliament has a joint say with EU states on the reform. The bloc's member states will now have to find a common position ahead of a final deal with the assembly by year end.

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Postal workers say the measure, even if delayed, will lead to job losses and a poorer quality service in rural areas.

The 12, mostly eastern European states that joined the EU in 2004 and after will have until 2013.

Countries that have many islands, a reference to Greece, will also have the same extension.

The inclusion of a new condition for granting a four year extension - a small population and limited geographical size - was inserted at the final vote stage so that Luxembourg would not have to open up its sector until the start of 2013.

"It's not really justifiable but if it serves to forge political consensus then we can be generous on this issue," Ferber said.

Postal services would still have to be nationwide and affordable, lawmakers said.

The broad majority in favour of delaying full liberalisation will put heavy pressure on EU states to follow suit even though there are several states who favour 2009.

EU Internal Market Commissioner, Charlie McCreevy, who was the author of the measure, has declined to comment on parliament's anticipated changes, saying he wanted to see the position reached by EU states first.