When Greece’s state asset fund, Growthfund, unveiled its 2025–2027 strategy for the national postal service ELTA earlier this year, it promised nothing short of a turnaround. The plan envisioned a profitable, modern postal network, with triple the EBITDA, a stronger foothold in the parcel-delivery market, and better use of real-estate assets. Central to that vision was network expansion: ELTA would grow its physical presence by 50%, surpassing 1,500 service points across the country.
Just months later, that narrative has flipped. Growthfund moved to close 204 post offices — 46 of them immediately — triggering strong backlash from local communities, unions, and regional officials. Under pressure, part of the plan was paused, but the damage to confidence was already done. Instead of expansion, ELTA is now associated with contraction, raising questions about whether those impressive targets were ever realistic.
The logic behind the original plan was straightforward: a larger network would drive more transactions, reinforce ELTA’s presence in smaller towns and villages, and position it to compete more effectively in Greece’s booming parcel market. By 2027, the state-owned postal operator expected its share of the parcel sector to rise from 13% to 18%. Closing branches undermines that goal, especially as private couriers continue to expand aggressively with new hubs and pickup points nationwide.
Proponents of the closures argue that consolidation will cut costs and streamline operations, particularly as ELTA moves to integrate its courier subsidiary, ELTA Courier. But this merger had been designed to function in a growing network, not a shrinking one. Cost savings alone may help in the short term, yet they do little to solve the deeper challenge: a postal operator cannot easily grow revenue if it is reducing the very infrastructure meant to support that growth.
The controversy has now reached the Greek Parliament, where lawmakers are demanding clarity. Growthfund’s CEO and ELTA’s CEO are set to explain what changed since they presented their ambitious plan and why ELTA publicly acknowledged difficulties meeting payroll obligations — a revelation that intensified concern over the organization’s financial stability.
