If this is the case, why are many other EU postal services still state-owned (e.g. Ireland, Poland, Cyprus, Greece)? The UK left the EU 5 years ago yet it’s still being used as cover for UK political decisions.
We live in a world where, for certain topics, people believe whatever narrative suits them at the time. Facts seem to not matter too much. Brexit is one of those topics.
They did not force the privatisation of Royal Mail; it was first made a special sort of PLC back in 2000 so that it could access private money, and arguably that helped accelerate the EU belief that postal services needed competition.
But they did force competition in EU postal delivery, and that effectively drove the decision to essentially fully privatise Royal Mail so it could compete.
It also had a very unfortunate outbreak of Crozier Disease and that didn't help.
> Following the 2010 general election, the new Business Secretary in the coalition government, Vince Cable, asked Richard Hooper CBE to expand on his previous report, to account for EU Directive 2008/6/EC which called for the postal sector to be fully open to competition by 31 December 2012. Based on the updated Hooper Review, the government passed the Postal Services Act 2011. The act allowed for up to 90% of Royal Mail to be privatised, with at least 10% of shares to be held by Royal Mail employees.
> Summary of legal position: Article 7 of the EU Postal Directive (Financing of universal services), has required the progressive – and since 1 January 2013, total - liberalisation of postal services throughout
the EU.
Other users have pointed out this isn't entirely accurate but i'm still shocked. My understanding was the job of the eu was to impose continent wide standards to enable free exchange between member states. How does dictating the policy of national postal services achieve any of that?
The EU generally doesn’t like state subsidies of services. Which makes sense, because state subsidies would provide an unfair advantage to companies operating in that state, over other member states. Reducing trade and competition across the bloc.
For postal services, the same applies. EU doesn’t like the idea of a state owned or subsidised postal business, preventing the entrance of competition from companies in other member states, or allowing the subsidised entities to expand and outcompete companies in other EU states.
The EU doesn’t set national postal policy. It only requires that the basic postal service is an open to competition from entities (private and public) in any EU member. With a carve outs for the funding of universal service (I.e. making sure that every address gets post regardless of profitability), where state aid is clearly needed.
halo|4 months ago
osrec|3 months ago
rwmj|4 months ago
exasperaited|4 months ago
They did not force the privatisation of Royal Mail; it was first made a special sort of PLC back in 2000 so that it could access private money, and arguably that helped accelerate the EU belief that postal services needed competition.
But they did force competition in EU postal delivery, and that effectively drove the decision to essentially fully privatise Royal Mail so it could compete.
It also had a very unfortunate outbreak of Crozier Disease and that didn't help.
zimpenfish|4 months ago
https://en.wikipedia.org/wiki/Royal_Mail which links to https://web.archive.org/web/20150224033637/http://stakeholde... (the EU directive has gone from their website and isn't in archive.org) which says
> Summary of legal position: Article 7 of the EU Postal Directive (Financing of universal services), has required the progressive – and since 1 January 2013, total - liberalisation of postal services throughout the EU.
Hopefully this qualifies as a valid citation.
FridayoLeary|3 months ago
avianlyric|3 months ago
For postal services, the same applies. EU doesn’t like the idea of a state owned or subsidised postal business, preventing the entrance of competition from companies in other member states, or allowing the subsidised entities to expand and outcompete companies in other EU states.
The EU doesn’t set national postal policy. It only requires that the basic postal service is an open to competition from entities (private and public) in any EU member. With a carve outs for the funding of universal service (I.e. making sure that every address gets post regardless of profitability), where state aid is clearly needed.
hdgvhicv|3 months ago