When Britain began selling off state-owned enterprises in the 1980s, it launched a wave of privatisation that spread throughout Europe and beyond. A quarter of a century later, the UK is a laggard when it comes to privatising Royal Mail.

Most large European countries have privatised or at least partially privatised the once state-owned postal monopolies, or – like France – plan to do so. The review of the postal sector by Richard Hooper, due to be sent to ministers this month, will emphasise the urgent need to bring capital into a business facing competitive challenges. Yet in spite of the support of Lord Mandelson for partial privatisation, the political obstacles are enormous and none of the options is without difficulties. Worse, private investors are not queuing up to buy a stake in a business weighed down by one of the country’s largest pension deficits.