Greece’s Post Office Crisis: A Clash Between Modernization and Social Obligation

Greece’s Post Office Crisis: A Clash Between Modernization and Social Obligation

The Hellenic Post (ELTA) has become the center of one of Greece’s most contentious political controversies in late 2025, as the state-owned postal service announced the closure of 204 branches—approximately 45% of its nationwide network—triggering widespread public outrage, parliamentary debates, and the resignation of its CEO. What began as a restructuring plan to address chronic financial losses has rapidly evolved into a crisis exposing deep fractures between fiscal necessity and social responsibility, particularly for Greece’s most vulnerable populations.​

The Issue: A Network in Collapse

On October 31, 2025, ELTA management announced that 204 of its 456 branches would be closed as part of its “Strategic Reorganization Plan 2023–2027”. The first wave of 46 closures took effect on November 3, with branches primarily in Athens and Thessaloniki shutting their doors overnight. The decision was justified by ELTA’s management on the grounds that 92% of postal deliveries and 90% of parcel shipments are now handled through home delivery, rendering an extensive branch network economically unsustainable.​

The closures affect both urban centers—including Athenian districts like Alimos, Dafni, Metamorfosi, Kaisariani, Nikaia, and Marathon—and rural regions spanning islands and mountainous areas such as Zagori in Epirus, Ierapetra in Crete, and North Tzoumerka in Aetolia-Acarnania. In some remote areas, residents now face traveling up to 50 kilometers to reach the nearest functioning post office.​

Root Causes: A Spiral of Financial Decline

ELTA’s financial troubles have deep roots. The organization has posted losses year after year, with 2024 alone recording a deficit of approximately €8.1 million despite revenues of €249.1 million. The company’s debts have ballooned to around €140 million, with administrative costs consuming €33 million annually. Traditional letter mail volumes—the historical backbone of postal services—have plummeted by nearly two-thirds since 2003, falling from over 620 million pieces to about 225 million by 2023.​

The company’s operational infrastructure has also deteriorated severely. Many branches operate with equipment dating back 30 years, and staff shortages have left some locations so understaffed that postal workers must manually cut barcodes from packages to scan them with flatbed scanners, as handheld devices are unavailable. Customers routinely face hours-long waits, and registered mail is frequently not delivered to homes but instead requires collection at branches.​

To keep ELTA afloat, the Greek government has intervened repeatedly. In December 2020, a €100 million capital injection was provided, alongside €149 million in compensation for the company’s Universal Service Obligation (USO) covering 2013–2018—payments intended to offset the cost of maintaining postal coverage in remote islands and mountain villages. A voluntary exit scheme launched in 2021 targeted 2,000 employee departures, and by the end of 2024, ELTA’s workforce had shrunk to 3,159—less than half the 7,186 employed in 2016. These support measures have triggered a European Commission investigation into possible state aid violations (Case SA.57538), which remains pending.​

Timeline: From Spreadsheets to Streets

The restructuring plan has been in development for years, but its implementation has been chaotic and politically explosive. On October 25, 2025, ELTA CEO Grigoris Sklikas announced the closures during a televised interview—only after notifying the relevant ministry by fax the previous day, a communication that reportedly went unnoticed. By November 3, customers arrived at branches to find locked doors and handwritten notes reading “This branch is closed”.​

The abrupt manner of the announcement sparked immediate backlash. Employees on temporary contracts found themselves unemployed overnight, while others received late-night phone calls informing them of transfers to distant branches. The Greek government, caught off guard, publicly criticized the lack of consultation with local communities and citizens. Opposition parties and even members of the ruling New Democracy party from affected constituencies expressed anger, with SYRIZA demanding an emergency parliamentary session to address the crisis.​

On November 5, amid mounting political pressure, CEO Sklikas submitted his resignation, citing the difficulties of implementing necessary reforms in the face of parliamentary resistance and public outcry. In his resignation letter, Sklikas defended his actions, stating that he had inherited “a neglected company with 30-year-old equipment and inadequate digital infrastructure,” and that the reaction from lawmakers made meaningful dialogue on the restructuring plan “extremely difficult”.​

Despite the resignation, government spokesman Pavlos Marinakis made clear that the restructuring plan would proceed, though with modifications. ELTA announced a temporary three-month suspension of further closures outside city centers to allow for consultations with local authorities. A new management team has since taken over, initiating discussions with affected communities and exploring alternative service models.​

Current Developments: Searching for Solutions

As of mid-November 2025, ELTA’s new management is reviewing the restructuring plan and exploring a “shop-in-shop” model that would co-locate some regional branches within Citizen Service Centers (KEP), aiming to reduce rental costs while maintaining a postal presence. However, the complete transfer of postal and financial operations to KEPs is considered difficult, as these centers currently lack the necessary infrastructure.​

The government has also emphasized efforts to maintain service coverage through expanded home delivery, mobile postal units, partnerships with local shops, and digital services. ELTA has equipped carriers with mobile terminals and mini-printers, enabling them to perform nearly all services during home visits. Additionally, the company is leveraging its real estate assets for the first time, with one building relocation saving €55,000 annually.​

Despite these assurances, skepticism remains high. The situation echoes Greece’s banking sector transformation over the past decade, when the number of bank branches shrank by 44%—from over 2,400 in 2015 to roughly 1,350 by 2024—resulting in the loss of some 17,000 jobs and creating service deserts in rural areas. Critics fear ELTA’s closures will replicate this pattern, leaving vulnerable populations stranded.​

Impact on the Greek People

The closures have had a profound social impact, particularly on two groups: the elderly and rural residents. For many older Greeks, post offices are not merely service points but essential lifelines. They rely on ELTA branches for pension collection, bill payments, and access to basic financial services. In rural and island communities where bank branches have already disappeared, the post office often represents the last remaining public service infrastructure.​

Greece’s 2024 survey on digital readiness revealed a stark digital divide: a large share of older citizens lack the skills needed to handle basic online services, and more than eight in ten who attempt online transactions require outside help. For this demographic, the shift to digital-first postal services is not merely an inconvenience—it risks complete exclusion from essential transactions.​

Local mayors have described the closures as “abandonment,” warning that stripping public services from the countryside will accelerate migration to major cities and further depopulate already struggling regions. Residents in affected areas have voiced their distress: “We don’t have internet or cars to go elsewhere,” underscoring the everyday challenges posed by this sudden transition.​

The closures are also expected to create operational strain on the remaining branches, leading to long lines, delays in pension and welfare payments, difficulties in mailing official documents, and rising dependence on private courier services, which are typically more expensive. Union representatives have denounced the closures as part of a gradual privatization process designed to make ELTA more attractive to private investors, with private courier companies like ACS already capturing the bulk of Greece’s rapidly increasing online orders.​

Special Impact on the Elderly and Rural Communities

The elderly population faces particularly acute consequences. Many older Greeks have spent decades relying on their local post office for routine transactions and social interaction. Post offices in small towns and villages function not only as service centers but as community hubs where residents gather, exchange news, and maintain social bonds. The loss of these branches severs a critical connection to public services and community life.​

In mountainous and island regions, the challenges are compounded by geography. Traveling 50 kilometers to the nearest post office is not a minor inconvenience for elderly residents without personal vehicles or reliable public transportation. In winter months, when weather conditions deteriorate, such journeys can become dangerous or impossible.

The European Parliament has raised formal questions to the European Commission regarding whether Greece's closures violate the universal postal service obligation, which requires equal access for all citizens regardless of place of residence.​

Rural communities also face economic consequences. Local businesses that depend on postal services for shipping products, receiving supplies, or conducting financial transactions now face increased costs and logistical difficulties. The Commercial Association of Athens has supported ELTA’s modernization efforts but emphasized that closures must be based on objective and local criteria, citing the branch on Metropoleos Street in Athens as a vital component of the commercial center.​

Conclusion: An Unresolved Crisis

The ELTA restructuring remains a work in progress, with no clear resolution in sight. While the government insists that modernization is essential for the company’s survival, the human cost of such reforms has ignited a political firestorm that transcends party lines. The resignation of CEO Sklikas has not defused tensions, and the three-month consultation period has merely postponed difficult decisions.​