President Nikos Christodoulides described the rejection of the government’s proposal for a permanent agreement on the Cost-of-Living Allowance (ATA) by employers’ organisations as “certainly not positive”, but said the executive branch has “second and third options” to move forward.
Speaking on Thursday after attending a luncheon hosted by the UAE ambassador in Nicosia, Christodoulides said he would not disclose what those government options are, but stressed that they exist to ensure that “through the country’s growth, both the middle class and low-income earners benefit”.
He noted that the text presented to employers on Sunday was identical to the one given to the trade unions on Monday, rejecting claims that a last-minute clause had been added. “Whatever we read to the heads of the employers’ organisations on Sunday evening, we read to the heads of the unions on Monday,” he said, adding that several officials were present at both meetings.
Christodoulides emphasised that the government’s responsible fiscal policy has produced one of the strongest growth rates in the eurozone. “This strong growth benefits all Cypriots, including Cypriot businesses, which we view as partners in building a resilient economy,” he said.
He pointed to several pro-business measures already adopted, including the reduction of the defence tax from 17% to 5% as part of broader fiscal reforms.
Responding to comments by SEK’s general secretary about an “invisible hand” influencing the employers’ decision, Christodoulides said, “I don’t know what this invisible hand is.”
Asked whether the government might submit a bill as one of its ATA government options, he declined to specify, saying such steps will be made public when activated.
He reaffirmed that the government “dares to tackle difficult issues” and will continue working towards a solution on ATA.
Also read: OEB and KEBE reject government ATA proposal
For more videos and updates, check out our YouTube channel
