German Postage Rates May Rise Significantly
Economy / Finance

German Postage Rates May Rise Significantly

Deutsche Post is anticipating a significant increase in postage rates for standard letters and postcards within Germany, according to Nikola Hagleitner, a board member responsible for the company’s postal and parcel business. Hagleitner stated the expectation is that the Federal Network Agency (Bundesnetzagentur), which approves postal rate increases, will more strongly consider the actual cost development and accelerating decline in letter volumes during its next review.

The existing rate, which saw standard letter postage rise to €0.95 from €0.85 earlier this year, is deemed insufficient by Deutsche Post. Hagleitner emphasized that the increases are not driven by profit motives but are necessary to fund the modernization of the postal service. She added that revenue generated by the company’s operations is reinvested within Germany.

The formal process for seeking further rate adjustments with the Federal Network Agency is scheduled to begin in January, with a decision expected towards the latter half of next year. While the outcome remains uncertain, Hagleitner expressed confidence in expecting a substantial increase.

Asked whether postage in Germany is comparatively inexpensive, Hagleitner avoided a direct answer, suggesting individual assessments are appropriate. She pointed out that while Germany’s standard letter rates remain below €1, rates in countries like Denmark reach €4. Hagleitner also highlighted a perceived imbalance within Germany’s postal system, noting that the country’s postage fees are among the lowest in Europe while labor costs are among the highest. She believes this discrepancy requires addressing.