EU communications ministers have agreed to open most of Europe's postal market to full competition from 2011.

However, in a compromise agreed yesterday, 11 member states were handed an extra two years to prepare their postal monopolies for competition.

The deal is a disappointment for internal markets commissioner Charlie McCreevy, who had proposed 2009 as the date when new entrants should be allowed to compete with monopolies for deliveries of standard letters under 50 grammes in weight.

However, staunch opposition from France, Italy and a group of states from central and eastern Europe pushed back the implementation date by up to four years in certain circumstances.

Mr McCreevy said he would accept the changes to the draft postal directive, which must still be approved by the European Parliament.

MEPs backed a similar compromise in July at a plenary meeting and are expected to rubberstamp the EU directive.

Portuguese telecoms minister Mario Lino, who chaired yesterday's meeting in Luxembourg, sought to assuage the trade union concerns that competition would inevitably lead to job losses in state run monopolies.

"This directive in no way changes the basic rights of the sector and workers in the sector," said Mr Lino, who added there were now no further objections to prevent the directive entering into force.

The new law will herald the final stage of the liberalisation of the €88 billion postal market in Europe.

Most segments of this market, such as parcel and letters deliveries above 50 grammes in weight, have already been opened to competition, but standard letters are the most lucrative segment of the EU postal market, says the European Commission.

An Post welcomed the decision taken by communications ministers and said it was ready to take advantage of the opportunities offered by postal liberalisation.

"We've been operating for some time with 65 per cent of our business open to competition from private operators and we're ready for this," said a spokesman at An Post.

However, it is possible that the firm could face tough opposition in the future from pan-European operators, such as Deutsche Post in Germany.

A Government spokesman said the Republic had not sought a derogation to delay competition until 2013 during the EU negotiations and the postal sector would be fully liberalised by January 2011.

The 11 EU states that will not have to open their markets until January 1st, 2013, under the new directive are: Cyprus, the Czech Republic, Hungary, Greece, Latvia, Lithuania, Luxembourg, Malta, Poland, Romania and Slovakia.

Three member states - Sweden, Finland and the UK - have already fully liberalised their postal service markets, including items weighing below 50 grammes.