On yet another major issue troubling the country - that of the Cost of Living Allowance (CoLA) - the government, and the President personally, have failed to provide a solution or to contribute decisively towards finding one. The result is a serious threat to labour peace and a heightened risk to the stability of the economy.
While the ultimate breakdown of dialogue between employers and trade unions cannot be blamed solely on the government or the President - the two sides bear heavy responsibility for their maximalist positions, and particularly the employers, whose intransigent stance at the final hour blew up a carefully balanced compromise - the government’s share of responsibility lies elsewhere.
It lies in the fact that the entire issue was not handled with the seriousness it deserved. For months, the government acted more as a messenger, relaying positions back and forth, rather than an active mediator. It misread the intentions of the social partners, clung to an unfounded optimism that “a solution would somehow emerge”, and, most crucially, failed to use the authority and influence of the institutions it represents to shape the outcome. After all, the state itself is the largest employer in the country - and one that pays CoLA.
President Nikos Christodoulides, in particular, appeared detached and complacent, remaining a mere spectator to what had long become a theatre of the absurd. It is telling that he only invited employers and unions to the Presidential Palace a few days before the collapse of talks - devoting less than two hours to both meetings combined. Most importantly, he showed reluctance and lack of courage to confront those he needed to, when he needed to. Once again, he acted as though he could make an omelette “without breaking any eggs.”
In short, Nikos Christodoulides has demonstrated not only that he underestimates domestic governance issues but also that he lacks the leadership qualities and political determination required to navigate them.
Every one of his predecessors - from Glafcos Clerides and Tassos Papadopoulos to Demetris Christofias and Nicos Anastasiades - faced similar crises. Each, in their own way, intervened decisively and found solutions. Christodoulides, by contrast, has failed miserably - a painful truth both for himself and for the country.