Spain injects €2 billion into Correos after a decade of losses
Spain's government bails out Correos with €2 billion over five years despite the parcel boom. We look at the paradox of a state-owned company that has lost €1 billion.
English · Original discussion in Spanish · Published
Correos: Spain injects €2 billion amid the parcel boom
The Council of Ministers has approved the contract-programme that will regulate Correos' new Services of General Economic Interest (SIEG) until 2030, with an injection of €2 billion over five years. The measure, which completes the reform of the Postal Law passed in July 2025 with the backing of the PSOE and PP parties, aims to plug a hole of more than €1 billion accumulated over the past decade. The paradox is plain to see: the state-owned company with the widest reach in the country needs a rescue just as parcel volumes hit record highs, driven by e-commerce.
How can you lose money during an e-commerce boom?
The question runs through the economic debate. Correos maintains a network of 2,400 offices and more than 60,000 employees, an oversized structure that managers have failed to make profitable. Critics point to management marked by political appointments and a lack of cost control: some argue that executive salaries and cushy office perks weigh more than efficiency. In many villages, the post office has become a hereditary family fiefdom.
The bill for universal public service
The contract-programme sets out the public service obligations Correos will take on, a burden the private operators do not carry. But critics point out that, unlike private parcel companies, Correos receives millions in subsidies. Pedro Saura's strategic plan, as chairman of the company, was meant to reverse the losses with the new Postal Law. For now, what is arriving is a rescue of €400 million a year for five years.
With the parcel market soaring and a public network paid for by everyone, the awkward question remains: how much more will have to be injected for Correos to become viable, or will it never be?
Related discussions in the forum
The Council of Ministers has approved the contract-programme that will regulate Correos' new Services of General Economic Interest (SIEG) until 2030, with an injection of €2 billion over five years. The measure, which completes the reform of the Postal Law passed in July 2025 with the backing of the PSOE and PP parties, aims to plug a hole of more than €1 billion accumulated over the past decade. The paradox is plain to see: the state-owned company with the widest reach in the country needs a rescue just as parcel volumes hit record highs, driven by e-commerce.
How can you lose money during an e-commerce boom?
The question runs through the economic debate. Correos maintains a network of 2,400 offices and more than 60,000 employees, an oversized structure that managers have failed to make profitable. Critics point to management marked by political appointments and a lack of cost control: some argue that executive salaries and cushy office perks weigh more than efficiency. In many villages, the post office has become a hereditary family fiefdom.
The bill for universal public service
The contract-programme sets out the public service obligations Correos will take on, a burden the private operators do not carry. But critics point out that, unlike private parcel companies, Correos receives millions in subsidies. Pedro Saura's strategic plan, as chairman of the company, was meant to reverse the losses with the new Postal Law. For now, what is arriving is a rescue of €400 million a year for five years.
With the parcel market soaring and a public network paid for by everyone, the awkward question remains: how much more will have to be injected for Correos to become viable, or will it never be?
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (16 replies).
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