PostNL taking Dutch government to court for State Aid

The Dutch postal service PostNL is taking the government to court for financial aid. The company is struggling with losses, but is legally obligated to deliver the mail on time and remain affordable. The company wants 68 million euros from the government for this year and next, NU.nl reports.

PostNL requested the subsidy in February, and the government immediately rejected the application. A few months later, caretaker Minister Vincient Karremenas of Economic Affairs announced that PostNL could take a day longer to deliver letters in order to cut costs.

But according to PostNL, the measures are “too late and inadequate” for the company to achieve financial stability, and aid from the government is needed. PostNL will therefore take the government to court to try and force the subsidy, CEO Pim Berendsen said on Monday, with the company’s quarterly figures.

According to Berendsen, European law states that public service providers like PostNL are entitled to compensation if the mandatory service becomes too expensive. The company would also like short-term financial support and an accelerated ruling from the court.

Delivering letters is becoming increasingly expensive. Mail volumes have been declining for years, but PostNL’s postal workers still have to cover the same routes in the same time, while wages and other costs continue to increase.

According to the company, without financial support, PostNL will suffer losses until at least 2029.