Greece’s state-owned postal service, Hellenic Post (ELTA), is entering one of the most turbulent phases in its modern history. The organization is closing 46 branches across the country today — a decision that has ignited fierce backlash from municipalities, local communities and political parties. What authorities describe as an “essential restructuring” is seen by many on the ground as the dismantling of a vital public service, especially in regions where alternatives are scarce.
The downsizing affects densely populated neighborhoods in Athens and Thessaloniki as well as islands and rural hubs, raising concerns for elderly residents, small businesses and communities that depend heavily on basic postal services. Critics argue that the move reflects years of mismanagement by successive governments, the state asset fund overseeing the company, and ELTA’s own leadership.
The closures come at a time when ELTA’s financial health continues to deteriorate despite repeated state support packages. The company ended 2024 with deeply negative equity of roughly €140 million — even after a €100 million capital injection in 2020. Liquidity remains a pressing challenge, with short-term debts far exceeding available assets and forcing the company into a constant struggle to meet day-to-day obligations.
Compounding the financial strain are outstanding subsidies owed by the state for ELTA’s universal-service mandate: nearly €47 million remained unpaid at the end of 2024, despite €58 million in advances issued over recent years. Meanwhile, a €3 million penalty related to a major cyberattack in 2024 — only partially covered by insurance — has underscored the need for costly upgrades to digital security and infrastructure.
The company has also been weighed down by long-term debt settlements to Greece’s social security system, including a €62 million repayment plan stretching over two decades, and by the lingering effects of a failed foray into the retail electricity market, which was abandoned in 2023 after generating significant losses.
Operational turbulence has been no less severe. A shift to three-day delivery under a revised universal-service regime triggered deep staff restructuring: permanent employees were sharply reduced, while short-term contract workers filled the gap — a model now set for further upheaval as temporary staff face layoffs. The merger of ELTA Courier with its parent company in late 2024, intended to streamline operations, has instead resulted in market share losses amid delivery delays, service failures and inadequate technological systems.
Adding to the uncertainty, the European Commission is expected to rule in the coming months on investigations into possible illegal state aid and VAT exemptions between 2013 and 2018 — a decision likely to bring additional financial pressure on both ELTA and the Greek state asset fund that controls it.
Taken together, these forces paint a picture of a once-essential public institution at risk of shrinking into irrelevance. While government officials insist the downsizing is necessary to safeguard ELTA’s future, many citizens see it as a retreat of the state from a critical public service — and a widening gap between policy decisions and the everyday needs of Greek society.
