In September 1828, Ioannis Kapodistrias signed in Poros of Troizina a decree “on the establishment of postal communication,” founding the General Post Office — one of the first public services of the newly established Greek state. That initiative aimed to ensure communication with local authorities, and the first offices were set up in Argos, Tripoli, Epidaurus, Syros, and Aegina. At first, nine walking and sixteen mounted postmen collected the correspondence and delivered it to the recipients.

Since then, almost two hundred years have passed. The post offices experienced days of glory and great prosperity, communications changed over the course of two centuries, and in 1861 the Post Office was granted the monopoly of issuing and distributing stamps. In 1892, it was connected with the Telegraph and Telephone services, and in 1949, with the establishment of the Hellenic Telecommunications Organization (OTE), the three Ts (Post, Telegraph, Telephone) were separated, and the Hellenic Post (ELTA) was created to provide purely postal services.

However, the images of mounted postmen, with their bulky leather bags and emblematic trumpets, accompanied the Greek countryside until the early 1960s. The postman would blow his trumpet to announce his arrival in the villages, and the square would fill with people and anticipation for a letter from abroad. Since then, the postal service entered the cycle of major changes that have characterized our era.

In 1996, it was included in the group of public enterprises (DEKO). In 1998, ELTA was designated as the provider of universal postal service. In 2000, it acquired a courier subsidiary, and in 2006, it was linked with the Postal Savings Bank, in a continuous effort to adapt to the rapid developments in communications — now defined by the technological explosion of the Internet, the dominance of email, and the complete transformation of the way people communicate. Needless to say, during the post-dictatorship years, ELTA, like most public enterprises, evolved within a wasteful, party-controlled environment, accumulating deficits, debts, and losses.

The Economic Crisis and the Entry of Private Companies

The great economic crisis of 2009 found ELTA disoriented and disorganized, with declining revenues and increasingly weakened services. In 2013, with the full liberalization of postal services in the European Union, it suffered a major blow as competition from private service providers intensified, gradually taking over larger and larger shares of its market.

From 2013 to 2018, one can say that ELTA’s sluggish administrations failed to respond to the intense pressure from private postal operators. From that point onward, ELTA could no longer be financed by the state budget, and any state subsidies were considered impermissible state aid. Those familiar with the field remember the repeated complaints by private postal companies — led by ACS, owned by Theodoros Fessas — to the European Commission on Competition, accusing ELTA of receiving state aid that violated internal market competition rules.

As a result, ELTA gradually and continuously lost ground. Today, approximately 500 private companies are active in this sector.

A Restructuring Plan and Voluntary Retirement for 2,000 Employees

With the private sector constantly gaining market share — making courier services dynamic and fast-growing — ELTA remained weak and unable to react. In 2018, it passed under the management of the Hellenic Corporation of Assets and Participations (the “Superfund”), though nothing substantial changed in its operation.

With the arrival of the New Democracy government in 2019, ELTA continued to decline at the same pace. Initially, liquidity problems were identified, and a corporate transformation was decided upon. The consultancy PwC was assigned to prepare a restructuring plan. In 2020, €240 million were provided by the state — €100 million as a capital increase from the Superfund and another €140 million from the government to cover debts arising from the universal service obligation. The latter amount was used to fund a voluntary exit program for 2,000 employees.

However, even then, the situation did not improve, mainly due to delays in implementing modernization measures. During the pandemic lockdown, ELTA lost yet another opportunity to reorganize and revive itself.

The Superfund’s Attempt at Rehabilitation

In the autumn of 2022, when the scandal of New Democracy MP Andreas Patsis erupted — who had received over €1 million in questionable legal fees — the depth of plunder and disintegration within ELTA was revealed. At that stage, the Mitsotakis government, weakened by the scandal, effectively raised its hands in surrender, transferring all management responsibility of ELTA to the Superfund.

The then CEO of the Superfund, Mr. Gregory Dimitriadis, appointed in October 2022 an interim management team led by Mr. Marios Tempos. A few months later, at the end of January 2023, Mr. Grigorios Sklikas was appointed and drafted a new strategic plan for the restructuring and reorganization of ELTA. The new plan identified new growth areas such as e-commerce, parcel delivery, cross-border trade, and the provision of financial services — all leveraging ELTA’s extensive network.

At the same time, PwC’s transformation plan was updated, focusing on rationalizing operating costs and digitizing processes and services.

Under this new plan, in August 2023, 143 low-traffic post offices were closed, and the number of sorting centers was reduced from 13 to 4. Additionally, a digital postman system was organized, robotic systems were introduced in sorting centers, business hours were extended at selected branches, and the vehicle fleet was renewed. These measures collectively improved ELTA’s financial performance in 2024.

The implementation of the plan was systematically supported by the Superfund’s management through coordination with mayors, MPs, and preparation for difficult decisions at the local level. By 2024, ELTA appeared to be finding a path toward recovery. Its finances met targets, and for the first time in many years, it showed earnings before taxes, interest, and depreciation of €11 million, compared to a loss of €2.8 million in 2021.

From Small Steps to Sudden Death

Last February, Mr. Dimitriadis was succeeded as head of the Superfund by Mr. Yannis Papachristou. The change was not insignificant. The new CEO did not accept the policy of small, cautious steps; he demanded a more aggressive approach to ELTA’s restructuring. Apparently, Mr. Sklikas did not resist.

Thus came the decision for the abrupt closure of 204 post offices — without prior consultation — leading to “the political shipwreck of ELTA in shallow waters.” A unique own goal, the result of dogmatic choices by individuals lacking any sense of the country’s political and social conditions.

Mr. Sklikas resigned, Mr. Papachristou is “in tears,” and Mr. Mitsotakis paid the price for his insistence on changing the leadership of the Superfund — because, as the rumor goes, Mr. Dimitriadis did not grant him all his wishes.