Hundreds of employees are to be transferred, ticket prices will be increased and strict spending guidelines will be introduced, according to a plan for the overhaul of the public transport system approved by the Cabinet this week.
Publically owned public transport in Athens has been racking up losses of up to 600 million euro a year and is seen to be a huge drain on state funds at a time when the government is trying to slash the budget deficit.
The European Union and the International Monetary Fund have been pressured the Greek government to restructure public transport.
The draft legislation contains a series of measures designed to reduce spending on the metro, the Kifissia-Piraeus electric railway (ISAP), the tram, trolley buses and buses.
To start off with, two public corporations will be formed to manage these modes of transport, although their operation will be overseen by the Athens Urban Transport Organization (OASA).
Currently, each of the five operates under separate management. The government hopes this will reduce waste and increase efficiency.
Public transport authorities in Greece currently owe a combined total of 3.8 billion euros, but this will be transferred to the state budget so they start with a clean slate.
A financial inspection team will be set up to audit the new firms every three months, to ensure that they are sticking to their budgets. However, the bill also limits the amount by which central government can subsidize the public transport system.
The draft legislation also foresees the transfer of 1,500 employees to other parts of the broader public sector, where there may be shortages.
The number of staff retiring over the next few years is expected to ease the pressure on finances.
Some 400 workers are due to retire this year and another 500 over the following two years.
Meanwhile, ticket prices are due to rise as a result of the overhaul.
Two new types of tickets will be in use as of 1 February: a 1.20-euro ticket which will allow passengers to use any mode of transport bar the metro for a single journey and a 1.40-euro ticket that will be valid for 90 minutes and can be used for metro journeys as well.
Source: Kathimerini.
