The 3 rd Postal Directive establishment of an internal postal market
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1 The 3 rd Postal Directive establishment of an internal postal market Denis Sparas DG Internal Market and Services Postal Services Unit Brussels,
2 Outline Main objectives of the EU postal reform Main elements of the Directive 2008/6/EC Employment in the postal sector Next steps: market monitoring, transposition and beyond 2
3 Main objectives of the EU postal reform (1) Choice creating conditions that provide business and individuals with choices in the types of service and service provider they can use. Affordability stimulating affordable postal services for both businesses and individuals. Availability safeguarding regular supply and convenient access. 3
4 Main objectives of the EU postal reform (2) Quality - fostering high quality, efficient and reliable domestic and intra-community postal services. Safeguarding Universal Service - ensuring the provision of a universal service that meets existing and future customer needs. Sustainable growth - ensuring that the European sector framework contributes positively to the Community s economic growth and its competitiveness priorities. 4
5 Cornerstones of the 3 rd Postal Directive unconditional date for full market opening for all Member States [31/12/2010 for 95% of EU market; 5% granted additional two years until 31/12/2012 commitment to keep universal service obligation existing EU Postal Directive has been reinforced and clarified (e.g. role of NRAs; Authorisation & Licensing). 5
6 Directive 2008/6/EC universal service confirmation of the existing requirements (Article 3) - provision of high quality service - (at least) five times a week - throughout the entire territory - at the affordable price obligation to provide universal service (Article 4) - attention on universal service and not on a provider - different solutions to provide this service (e.g. designation, public procurement etc.) 6
7 Directive 2008/6/EC safeguarding the universal service (1) unconditional full market opening (no exclusive rights) non-exhaustive list of other possibilities for financing universal service, should any net cost occur new Annex 1 guidance on calculating the net costs net costs not conditio sine qua non of universal service appropriate steps of rationalization to be taken before 7
8 Directive 2008/6/EC safeguarding the universal service (2) net costs of universal service are not the same as the costs of providing the service the calculation should be based on the appropriate cost accounting system (Article 14) burden of proof on the subject of claiming net costs assessment to be crosschecked by the NRAs 8
9 Directive 2008/6/EC licensing regime (1) possibility of designation of one or more universal service providers (Article 4) individual licence (Article 9(2)) - to guarantee compliance with essential requirements - to ensure provision of the universal service general authorization (Article 9(1)) - to ensure provision of the universal service 9
10 Directive 2008/6/EC licensing regime (2) more specific conditions to avoid market entry barriers - pay or play - clear definition of essential requirements licence requirements and licence conditions should respect general principles of Community law - transparency - necessity - non-discrimination - proportionality - objective justification Article 9 of the Postal Directive Article 12 of the EC Treaty 10
11 Directive 2008/6/EC access to elements of postal infrastructure new provision of access as a result of multi-operator environment general principles - transparency - non-discrimination services within the scope of the universal service 11
12 cost-orientation of prices Directive 2008/6/EC cost accounting principles exemptions - uniform tariff - special tariffs (recital 39 avoided costs) incentives for efficient service provision C-287/06 (Vedat Deniz) application of the principles of non-discrimination 12
13 Directive 2008/6/EC other issues obligation to keep separated accounts maintained but adapted due to new circumstances (Article 14) users complaints procedure extended to all postal operators (Article 19) explicit legal basis for data collection (Article 22a) 13
14 Employment drivers 14
15 Employment in the postal sector Employment trends (quantity of employment) direct employment (Universal service providers, competing operators and other postal agents) indirect and induced employment (direct marketing, letter print and production, mail order fulfilment, transport, vehicles etc) Employment conditions (quality of employment) full time and part time work public and private status of employees employment regulation 15
16 Employment Postal Directive recital 6 promote high level of employment recital 16 regulation of employment conditions, but not to result in unfair competition recital 53 sole competency for Member States; can be part of national licensing regime (transparency and proportionality) point 19, Article 2 part of essential requirements 16
17 Employment trends universal service provider(s) 5 million approx. employed (directly, indirectly, induced) 1.71 million directly employed 3.5 million approx. indirectly employed USPs have on average decreased total employment since 1990 employment reduction in USPs is slowing down and becoming stable USPs have to some extent shifted to part time employment and outsourcing new data will soon be published study on main developments 17
18 Employment trends competing postal providers mix of full and part time employment with big country differences Part timers highest in NL: 70%, CY: 65%, LT: 55% MT, LV, SI, IT, PT, GR, ES: under 8% Part time employment evolution (share of total employment): 18.2% in % in 2004 Decrease in civil servant status: 10,4% average reduction USPs outsource activities that do not belong to their core competence 18
19 Employment trends forecast impact of main existing drivers will remain and in some cases could increase (e.g. automation, e-substitution, demand) ongoing pressure for efficiency/restructuring to continue, mainly with USPs continued shift of employment patterns e.g. part-time employment, outsourcing creation of new jobs expected in some areas: in USPs: diversification (e.g. express/banking/other activities, e.g.) in CPOs and induced employment 19
20 The Commission s Transposition Assistance continued commitment of the Commission to provide assistance on the implementation was one of the tokens for the success of the legislative negotiations obligation to provide assistance has also been enshrined in Recital 32 and Article 23a of the Postal Directive awareness of the risks of non - implementation, incorrect implementation/interpretation or application is growing (barriers to competition/market entry) specific length of transposition phase (two step approach) rather increases risks 20
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