Newsroom
President Nikos Christodoulides has indicated that the government is considering alternative approaches to the Cost of Living Allowance (COLA) after employers’ organizations rejected its proposed permanent agreement. He described the employers’ decision as “certainly not a positive one,” but did not disclose the details of the alternatives under consideration. The President also emphasized that “the text read to the employers’ organizations on Sunday was the same as the one presented to the trade unions on Monday.”
Speaking to journalists at a luncheon hosted by the UAE Ambassador in Nicosia, Christodoulides highlighted the country’s strong economic growth, which he said reflects the government’s responsible fiscal policy and benefits “the entire Cypriot people, including Cypriot businesses.” He added, “We approach Cypriot businesses as partners and fellow travelers in this major effort to build a strong and resilient economy.”
The President cited measures taken since the government’s first day in office to support entrepreneurship, including tax reforms. On this, he noted, “we dared, for example, to reduce the defense tax from 17% to 5% so that Cypriot businesses could benefit.” He reiterated that the employers’ rejection “is not positive, and it certainly does not reflect what we discussed on Sunday night.”
Responding to a remark by the Secretary-General of SEK regarding an “invisible hand” influencing the employers’ decision, Christodoulides said, “I do not know what that invisible hand is.”
He confirmed that the executive branch has multiple options to ensure that economic growth benefits both the middle class and low-income citizens. “And in that direction, I repeat, there is a second option and a third option, which, depending on developments, we will proceed with,” he said.
When asked whether one of these options could involve introducing a bill, the President declined to comment, stating, “When they are activated, they will become known.”
Christodoulides rejected claims that the government added provisions to the draft agreement at the last moment, emphasizing, “what we read to the heads of the employers’ organizations on Sunday night was exactly what we read to the heads of the trade unions on Monday. And I was not alone in that meeting; there were many others present.”
On the government’s approach to challenging issues, he said, “We bring solutions and we will also bring one to this particular matter.” Regarding his emergency meeting with transport sector representatives, he confirmed it took place and said announcements from the organized groups “should be expected shortly.”
