Newsroom
President Nikos Christodoulides has pulled what looks like an ace from his sleeve, a package of tax breaks aimed at sweetening the deal for employers and finally unblocking the long-stalled dispute over the Cost-of-Living Allowance, or ATA.
After weeks of silence and stiff stances, the president’s new pitch has done what few expected: brought the island’s two big employer groups, KEVE and OEB, back to the table. Both have now agreed to meet with Finance Minister Makis Keravnos and Labour Minister Yiannis Panayiotou in the coming days.
According to Kathimerini's Dorita Yiannakou, the proposal isn’t final yet, but here’s the gist: the government would offer targeted tax incentives and reliefs to offset the cost of restoring ATA to 100%. It’s meant to be a “give-and-take” deal that helps workers keep up with inflation without weighing down employers long-term.
Christodoulides has also brought in Finance Minister Makis Keravnos as his quiet negotiator, a familiar face to both sides. With a background in labor affairs and a reputation as someone who “speaks the employers’ language,” Keravnos is being counted on to calm the waters after tensions with Labour Minister Panayiotou.
Unions, meanwhile, are holding their line. They want ATA fully reinstated, gradually, yes, but within a clear and binding timeframe. They’re also pushing for it to cover all workers, including those on minimum wage, and for the state to back the principle “no public contract without a collective agreement.”
Still, Panayiotou insists he’s optimistic. “We’re committed to social dialogue,” he said, adding that there’s enough common ground to reach a deal that’s fair to both employers and workers.
Whether Christodoulides’ tax card turns out to be a winning hand or just a clever bluff should become clearer in the next few days, as both camps shuffle back to the negotiation table.
