All signs point to an imminent agreement on the cost of living allowance (CoLa) between trade unions and employer organisations, with further meetings of Labour Minister Yiannis Panayiotou and Finance Minister Makis Keravnos set to be held “in the next few days”, President Nikos Christodoulides said on Monday evening.

“We are in the final stage, we believe the conditions are in place to reach a conclusion, and within this framework, there will be a joint meeting, the two Ministers will first meet separately with the social partners, with the aim of then proceeding to a joint meeting, so that a conclusion can be reached. I believe there is a solid foundation for a positive outcome,” the President said.

Asked whether the government intended to adjust its position in order to reach an agreement, Christodoulides urged patience and referred to the governments mediating role in the context of the negotiations.  

“You understand that we are playing a mediating role in the agreement that must be reached between the unions and employers,” he said.

Referring his meeting with Labour Minister Yiannis Panayiotou and Finance Minister Makis Keravnos earlier in the day, the President said that the three had discussed a “more specific” framework, which was yet to be talked over with the trade unions and employer organisations.

He added that so far, he had not been in contact with either the unions or the employers organisation.

“[We approach the talks] with hope and optimism. From our side, we believe that the infrastructure is in place for a positive outcome,” Christodoulides said.

Earlier on Monday, the President had met with Labour Minister Yiannis Panayiotou and Finance Minister Makis Keravnos to discuss further steps to reach an agreement on the implementation of CoLA, which has been the core topic at the centre of an ongoing trade union and employer dispute.

“The data relating to the CoLA mechanism were evaluated and the next steps were determined to intensify the process, with the aim of reaching an agreement, which is considered feasible,” government spokesperson Konstantinos Letymbiotis said after the trio’s meeting.

Panayiotou, who had been a central figure in the mediation process between trade unions and employers, and Keravnos are set to hold meetings with both parties in the coming days.

Employers’ organisations OEV and Keve gathered for their first ever joint meeting on the allowance on October 2, after which they stressed that the universal implementation of CoLA was out of question.

The organisations said they aimed for an upgrade and full modernisation of CoLA, taking into consideration the health of the economy and national competitiveness, “without burdening the business world.”

The trade unions had left the last meeting with Labour Minister Panayiotou without further commenting on the matter on September 26.

Sek’s secretary-general Andreas Matsas had previously warned of an escalation of measures should the meeting yield no results.

Matsas’ warning follows a three-hour general strike in September, which was called due to the ongoing disagreement between trade unions and employer organisations. The strike affected the whole island, including schools, transport and hospitals.

The thirteen trade unions that called for the strike are demanding the full restoration of CoLA and have made it clear that they are against any modifications to, or the abolition of it.

Panayiotou has said that CoLA should be paid to all on a sliding scale.