Opinion
The Big Loser in the ATA Saga
And here we are. The government’s big promises and bold declarations over the Cost-of-Living Allowance (ATA) have officially run out of road. Remember when officials were preaching “ATA for all,” even pushing protesters to turn the slogan into rally signs? Well, in the end, not even minimum-wage earners will see a cent of it.
The process is finally wrapped up. If we’re looking for silver linings, at least the deadlock is over and the labor climate can exhale a little. Workers, who can hardly call themselves the winners, did manage one thing: securing a return to 100% ATA for those entitled to it within the next 18 months.
The government, however, walks away the undisputed loser. It failed to deliver even the minimum required to keep its original promise of helping a wide audience and boosting its popularity. Employers, on the other hand, emerged as the quiet victors. Faced with a tidal wave of demands, including “ATA for all," they ended up conceding very little while preserving the stability businesses crave.
The Coming Upgrades
On paper, Cyprus’ macroeconomic numbers look impressive enough for the government to celebrate. And celebrate it does, loudly. The problem? These shiny figures don’t reflect the day-to-day reality of a society struggling with soaring prices and a cost of living that feels heavier by the month.
Still, macroeconomic performance matters. It’s the first thing anyone assessing an economy will look at. Ideally, that’s the lens the rating agencies should adopt too, as they prepare to reassess Cyprus in the coming days. If they really do recognize the progress, then they should issue the kind of upgrade you’d expect for a country that, against the odds, is meeting Maastricht debt criteria in this environment.
If they don’t, then we’re left with only one conclusion: they see the performance as temporary, and that should make us uneasy.
The Missing Momentum
Greece and Cyprus now essentially share one banking ecosystem, something made clear in the nine-month financial results. The trends are almost identical. Overall, the banks are seeing lower interest income and higher provisions for bad loans. The result? Shrinking profits and a new scramble for revenue and markets.
The sector still has two big advantages: strong capital buffers and abundant liquidity. Share prices remain attractive, though the momentum of previous months is clearly losing steam. Barring any surprises, the banking industry appears set for a period of quiet waiting.
A Warm Cable, at Last
There’s finally good news on the undersea electricity cable project. The recent energy summit in Athens breathed new life into an initiative that had been forgotten for months. Reports suggest that the sixth transatlantic energy cooperation meeting piqued both American and Israeli interest, seeing the cable as part of a wider regional energy strategy, including Southeast Europe.
No matter how positive the attention, the cable won’t solve Cyprus’ immediate energy headaches. So whatever domestic plans exist, or should exist, must continue in parallel.
Blind Objections, Real Concerns
Secondary school teachers don’t tolerate anything that feels like an encroachment on their turf, so naturally they’ll strike the very moment Parliament begins debating the new teacher-evaluation system. Their union, OELMEK, rejects the provisions they’ve seen so far and argues that many elements remain undefined, making it impossible to oppose them formally but certainly easy to distrust them.
Yet amid the noise, the teachers raise a valid point that MPs shouldn’t ignore: the cost. According to OELMEK, the reform carries an estimated price tag of around €13 million, €10 million of which relates directly to implementing the evaluations.
Whether Parliament listens is another story. But pretending the price tag doesn’t matter is not an option.
