The Reorganization, Regulation and Liberalisation of Mail Services. An Analysis of the Italian Reform

This work analyses the reform of the Italian mail service. First it looks at the reorganisation of the state owned mail company. Secondly, it focuses on the gradual liberalisation of the mail service market, undertaken in compliance with EU legislation. The aim is manifold: to assess the outcomes from the reorganisation process; to analyse persistent problems with sector regulation and with the market liberalisation; and, finally, to identify an agenda of initiatives that may be adopted in order to solve open issues. The Italian mail service reform has focused on the need to balance the postal company budget. This priority, pursued at the expense of an independent regulation, has both delayed the process of effective liberalisation and hindered competition in the liberalised market segments. Furthermore, the results from the internal reorganisation, undertaken in a protected market, might not persist under free market conditions. Conversely, a serious market reform planning for liberalisation and accomplishing an effective regulation, is a necessary prerequisite for the development of this sector.