Government presents reform ideas: letters could arrive later in the future

Status: 01/26/2023 9:13 p.m

The coalition wants to revise the rules for the mail market. The Ministry of Economics has presented initial plans that will allow the postal service to deliver later. In return, other requirements are to be tightened.

The Federal Ministry of Economics has presented a key issues paper on the reform of the mail market in Germany. The most important change from the point of view of many customers concerns the possible extension of the running times. Currently, at least 80 percent of letters in Germany have to be delivered on the following working day, 95 percent have to reach the recipient after two working days.

“The current runtime specifications are not very meaningful and should be adjusted,” writes the ministry in the key points. “Instead, specifications with longer terms and greater binding force could meet the needs of users to a greater extent.”

The Saturday delivery should remain

On the one hand, such an adjustment would be a relief for the market leader Deutsche Post, because it would then have less time pressure for transport. However, the waiver of the 80 percent mark for next-day delivery could be combined with a higher requirement for delivery on the second day or a high mandatory quota for the third day.

In any case, an extension of the transit times would go hand in hand with the aim of ensuring that shipments reach the recipient reliably. “Effective shipment tracking” can help, according to the ministry. The Ministry did not touch the cornerstones of the current regulations, according to which letters must be delivered on all working days – and thus also on Saturdays.

Expedited transportation may cost more

Based on the proposals, postage models would also be conceivable in the future, with which consumers pay more for guaranteed fast delivery the next day. Deutsche Post had already brought such models into play. “A competitive environment forms the appropriate framework for a successful transformation of the postal markets,” says the key points of the ministry.

One aim of the reform plans is to increase competition. In order to be able to enforce the future quality rules for the letter and parcel market more effectively, the Federal Network Agency is now to be given “effective powers to issue orders and impose sanctions”. Federal Network Agency boss Klaus Müller said in a first reaction that his authority welcomed “the proposals for clearer enforcement rules”.

The document contains a number of other considerations on the upcoming legal reform, which had already been announced as a joint project in the coalition agreement between the SPD, the Greens and the FDP. Unlike at the moment, vending machines could play a role in the future in order to fulfill branch network obligations. The post office maintains so-called post offices where you can pick up and drop off packages and where you can buy stamps. Such machines should be meant.

Draft law in the summer at the earliest

The key issues paper that has now been submitted is a basis for discussion in order to push the legislative process forward. A first draft law could be presented in the summer. What the legal rules will look like in the end is still open.

The Postal Act was last fundamentally revised in 1999 – at a time when letters were much more important than they are today and parcels only played a secondary role. The Federal Ministry of Economics and Technology is reacting to the fact that the time factor in letter delivery often no longer plays a major role with its proposals to extend delivery times. Many people prefer emails or chat messages for urgent written matters. “Users’ expectations of the various postal services have changed over time,” the paper says. “These days, the focus is on reliability and commitment with letters, and speed and predictability with parcels.”

Post is reluctant to respond

In view of declining shipment volumes and rising costs, Swiss Post had repeatedly called for changes to the applicable legislation. “Basically, we welcome the fact that the federal government wants to redefine the requirements for nationwide postal service in Germany and the corresponding legal framework,” she said. “Especially with regard to the focus on more social and ecological sustainability agreed in the coalition agreement, the paper presented falls far short of what is required and creates additional bureaucracy,” the group criticized the proposals from the ministry of Economics Minister Robert Habeck. Deutsche Post, whose largest single shareholder is the federal government, now wants to contribute its suggestions in the further legislative process.

The association BIEK, in which competitors of the post office such as UPS are organized, emphasized that a “pro-competitive modernization” of the regulations is imperative. “In principle, the right topics are addressed in the key issues paper,” explained the association. Cross-subsidization at the post office between letter and parcel business must be ruled out.

The Federal Association of Letter Services (BBD), in which rather small competitors of the post have joined forces, evaluated the paper positively. “The instruments of the Federal Network Agency will be significantly sharpened and the competition for the best services and the cheapest prices will be put on a fair basis,” said the association’s chairman, Walther Otremba.

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