President Nikos Christodoulides called employers’ rejection of the government’s draft permanent agreement on CoLA (Cost-of-Living Allowance) “certainly not positive,” adding that the executive “has second and third options” to ensure growth benefits “the middle class and low-paid workers.” He declined to disclose those options, noting the text read to employer organisations on Sunday was the same presented to unions on Monday. He cited the government’s “responsible fiscal policy” and recent pro-business steps, including cutting the defence levy from 17% to 5%.
On claims of an “invisible hand”
Responding to SEK (Cyprus Workers’ Confederation) secretary-general Andreas Matsas’s remark about “an invisible hand” influencing the last-minute outcome, Christodoulides said: “I do not know what that invisible hand is.”
Asked if tabling a bill is among the options, he said he would not publicly detail alternatives: “When they are activated, they will become known.”
Government spokesperson’s line
Government spokesperson Konstantinos Letymbiotis said all data are being assessed after employers’ rejection and efforts “will continue” toward a conclusion. He urged all sides to act responsibly, stressing the wording on criteria and measures “was there on Sunday night” and matched what was sent to all parties on Tuesday morning. The convergence framework, he said, aimed to address concerns on both sides and deliver a permanent agreement with full restoration and extension of CoLA via incentives and government measures.
Blame game and next steps
Letymbiotis said some “consciously do not wish” to strengthen the middle class and low-paid at a time of favourable economic conditions, but insisted the government still sees a path to agreement if partners show institutional responsibility. He rejected linking the tax reform with CoLA, and, on the “invisible hand” claim, declined to speculate while noting talks had come “very close” to acceptance of the convergence framework.
Source: CNA