(BRUSSELS) - The European parliament on Thursday gave the green light to end state monopolies for letter delivery, endorsing the liberalisation of the market for regular letters, the final step in the process.

The members of the European parliament meeting in Brussels rejected all proposed amendments to the plan and endorsed the scheme agreed by EU member states last October.

The measure will come into effect on January 1, 2011, although 11 EU member states will get a two-year grace period.

The European Commission, the EU's executive arm, welcomed the parliamentary endorsement which it said, "brings clear benefits for postal users".

"Postal reform arms Europe's postal operators for the challenges and the opportunities of the communications revolution. Postal services are vital for our citizens and businesses," said commission chief Jose Manuel Barroso in a statement.

The 11 nations which do not have to enact the measure until December 31, 2012 are: Cyprus, the Czech Republic, Hungary, Latvia, Lithuania, Malta, Poland, Romania and Slovakia -- all EU newcomers who have joined since 2004 -- plus Greece and Luxembourg.

The European postal sector was opened to competition 10 years ago for the delivery of packages weighing more than 350 grams. The measure was extended in 2003 to items of more than 100 grams and in 2006 to letters weighing more than 50 grams.

The commission had proposed to do away with state monopolies for the delivery of letters weighing less than 50 grams by 2009 while guaranteeing postal delivery services throughout each country.

But a group of countries uneasy about full liberalisation pushed for more time to completely open their postal markets.

The European Union's executive arm is eager to build on the perceived success of Britain, Finland, the Netherlands and Sweden, which have already opened their postal market to competition.

In another carrot towards liberalisation, only countries which have already opened their markets will be allowed to become involved in the freed-up letter delivery sector elsewhere in the EU.

The commission has predicted few changes for consumers, saying that new competitors would probably try to differentiate themselves from existing state-controlled post offices with lower costs and tailor-made services.

European Parliament Legislative Observatory

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