Between Former Monopolists and New Competitors: Fragmentation and Deterioration of Employment Conditions in Postal Services

The discussions about a single European Market for postal services picked up in the late 1980s and resulted in the circulation of the Commission's "Green Paper on the Development of a Single Market for Post Services" in 1992 (European Commission 1991). Therein the Commission criticised the fragmentation of postal markets in Europe along national standards and regulations. In the late 1980s, handling and delivery of mail (as opposed to heavy parcels and express services) were still organised as national post monopolies, held by state departments or public enterprises. The Commission expected the introduction of competition not only to establish similar standards across Europe, but also to improve service quality and efficiency. 1 The Council shared the Commission's view and the Green Paper resulted in a Council Resolution, followed by a draft directive in 1995 and the First Postal Directive in 1997 (EC Directive 97/67/EC). The long discussion process was caused by sustained concerns about the consequences of liberalisation for the public nature of postal services as well as about the future of the national monopolists. The resulting compromise included a gradual opening of the market and the introduction of a universal service obligation.