The European Union is set to vote through proposals liberalizing postal services, but delaying their implementation by more than two years.

The European parliament has voted for a compromise bill which will oblige the countries of Western Europe to abolish the national monopolies for postal services by 2011. The 'new entrant' nations of central Europe however, will have much longer to implement the reform, as will Greece.

The executive body of the Brussels bureaucracy wanted the liberalization to take place by 2009, however this was too much for the politicians in the European parliament. Many nations were not in favor of de-regulation in this area, worried by the political influence of postal workers who might lose their jobs. The proposed compromise was a way of dealing with these objections. In particular France and Belgium have expressed their unease. However although the de-regulation has been delayed it has not been stopped and this must count as substantial move towards the liberalization agenda.

There remains the possibility that further obstacles could be put in the way of liberalization by the individual countries through the 'Council of Ministers'.

Under the bill just passed by the European Parliament, countries that have already deregulated their markets are permitted to exclude remaining national monopolies from other nations between now and 2011.

States will also have to demonstrate how they will ensure national delivery within the new deregulated markets.

Northern European nations have already made substantial steps towards an open market in postal services. Britain and Sweden are in the vanguard of this, but Germany and the Netherlands are planning to abolish their remaining constraints on competition this year. However these countries have encountered opposition to liberalization as the effects on jobs within their existing postal monopolies have become apparent.

Netherlands based TNT and German Deutsche Post World Net is the companies likely to emerge as leading players in any reformed European postal market.