Services of General Economic Interest in the Postal Sector

Abstract

This chapter deals with services of general economic interest (SGEIs) in the postal sector. It first traces the history of universal postal service and finds that, although it was often taken for granted, the modern version of universal service obligation (USO) emerged only after World War II. This chapter then investigates how USO is treated during and after the market liberalisation process in the postal sector. This study suggests that universal postal services differ significantly from their counterpart in the telecommunications sector. From the very beginning, universal service occupied a much more prominent position, and liberalisation was much delayed and prolonged. The EU managed to establish a minimum level of harmonisation regarding the definition of SGEI, and the Member States enjoy much freedom in regard to the scope of USO. While a significant amount of funding is still required for USO funding in the postal sector, the Commission has been using the state aid rules to ensure such funding does not lead to over-compensation.