The German postal law is outdated. It dates back to 1998, a time when many letters were still being written and hardly any packages were being sent by online retailers. Now it is being reformed: with the votes of the traffic light coalition, the Bundestag finally approved the new regulation on Thursday. In July it will be the Bundesrat’s turn. An overview of the reform and its consequences.
Why is there a postal law and what does it prescribe?
After the privatization of the Federal Post Office in the 1990s, the government set rules so that people could continue to receive letters reliably and buy stamps easily. Since then, the federal government has stipulated that every large village must have a post office and a mailbox within easy reach, and that letters must reach the recipient fairly quickly. They must also be delivered six days a week – including Mondays, although few letters are sent at weekends.
:The letters no longer fly
For decades, tons of letters were transported by plane across the country every night. This is now over, and not just because of the climate.
What is the problem?
The rules date back to a time when online commerce was still in its infancy and letters were part of everyday communication. A lot has changed since then: people chat and write emails instead of letters, even bank statements and insurance documents are delivered digitally. And people often go shopping online instead of in the city center. As a result, the number of packages is rising sharply, the number of letters has been shrinking for a long time – and the costs per item have risen massively for the post office. After all, it has to operate a mail network of the same size in which it has fewer and fewer shipments; it has to deliver letters everywhere in Germany, even to isolated farms. Despite these changes, the postal law has not yet been amended. This is considered long overdue and should now finally happen.
What is the most important change?
The Deutsche Post will be under less time pressure in the future. Currently, at least 80 percent of the letters posted today must reach the recipient on the next working day and a further 15 percent on the day after that. The new law stipulates that there will only be a mandatory value on the third working day after posting, namely 95 percent; on the fourth working day, it will be 99 percent. This will enable the post office to reduce costs, the domestic flights used for mail delivery that had been in use for decades were cancelled – this also helps with climate protection. For consumers, however, this also means that they have to wait longer on average for a letter than before. However, those in a hurry can send a faster (and more expensive) priority letter.
What else is changing?
In the future, vending machines will probably be more common in villages and on the outskirts of towns. The obligation to operate a large branch network will still apply. In certain cases, however, vending machines can be taken into account (in these cases, the local authority and the Federal Network Agency have a say). The advantage of vending machines is that they are available around the clock – unlike branches staffed by people, often kiosks or supermarkets with a post office counter. The changes are to come into effect from next year. Other key points of the law will remain, such as the six-day delivery. This means that deliveries will still have to be made on Mondays.
Does this also apply to packages?
There are no government delivery time requirements for the parcel industry, but other parts of the law also affect this. For example, new regulations on working conditions: parcels that weigh more than 20 kilos should normally be delivered by two deliverers, unless suitable technical equipment is available. In this case, one-person delivery is also permitted. In addition, subcontractors, whose use the Verdi union is very critical of, should be better monitored: among other things, they must provide information on working hours. Authorities could then compare this information with the data recorded when parcels were delivered and thus identify violations of the Working Hours Act.
Will postage be more expensive?
Every three years, the Federal Network Agency uses a calculation procedure to determine how much leeway the post office has for increasing postage. The Postal Service Act provides a framework for the procedure. In 2019, the price of a standard domestic letter rose by ten cents to 80 cents, and two years ago by five cents to 85 cents. Other types of mail – such as postcards and maxi letters – also became more expensive. This is likely to be the case again in January 2025 – but by how much is still unclear. However, the traffic light coalition wants to ensure that the postage for standard letters does not become more expensive than one euro.
How is Deutsche Post reacting to the reform?
As a “universal service provider”, the market leader is most bound to the legal requirements – and it is not particularly enthusiastic. On the one hand, the post office welcomes the fact that the rules are finally being dusted off and the time pressure for mail delivery is being reduced, which has meant that letter planes have been eliminated. On the other hand, it criticizes the fact that competitors are being promoted and bureaucracy is being increased in the rapidly shrinking mail market. In the future, small competitors will also be allowed to hand over consignments of goods to the post office for delivery.
What does politics say?
Despite their different ideas, the SPD, Greens and FDP have agreed on a compromise without any loud background noise. The traffic light coalition sees this as a success and an expression of its ability to act. Social Democrat Sebastian Roloff also sees the consumer as a winner: “We are ensuring comprehensive postal services six days a week for a long time and in all regions of Germany and ensuring that the letter market continues to function despite falling volumes.” Consumers also seem to welcome the core of the reform: according to a Yougov survey this week, 50 percent of respondents are in favor of the extended delivery times for letters, while 37 percent are against them. The opposition CSU politician Hansjörg Durz, on the other hand, criticizes – similar to the post office – more bureaucracy. This can be seen in the scope: the previous postal law comprises 19 pages and the new one 80 pages.