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The EU Commission is bringing Austria before the Court of Justice of the European Communities on the child benefit rules for EU citizens that have been in force since 2019. The rules are discriminatory and therefore violate EU law, said a spokeswoman for the Brussels authority.
The ÖVP and FPÖ coalition decided in 2018 to adjust the child benefit payments to the cost of living in the child’s country of residence. Among other things, indexing means that the benefits for Hungarians, Poles, Romanians and Slovaks working in Austria are reduced if their children live at home. This will give tens of thousands of children less money than before. Previously, the Vienna government expected savings of around 100 million euros.
According to the EU Commission, however, these rules contradict EU law. Therefore, the authority launched a so-called infringement procedure against Austria in late January 2019. However, the concerns of the EU Commission could not be resolved in the course of the procedure.
The mechanism violates “existing social security coordination rules and is discriminatory as some EU mobile workers who fully contribute to Austria’s economy, employment and social security receive lower benefits than those whose children are in Austria live “said the EU Commission. Indexing does not apply to Austrians working abroad for an Austrian authority and whose children live with them there, although their situation is comparable.
The Family Minister defends the regulation: “A question of justice”
Austrian Family Affairs Minister Christine Aschbacher (ÖVP) defended the regulation. “Due to the different cost of living in the EU, we still have a question of justice,” said the minister. However, the EU Commission can, of course, refer the question to the Court of Justice of the European Communities “if you have doubts about the compatibility of indexation under European law”. However, the ongoing procedures would not be commented.
SPÖ MEPs Andreas Schieder and Evelyn Regner, on the other hand, described the EU Commission’s complaint as “an important signal for more justice”. “In a fair Europe, all children are worth the same amount. Chancellor Kurz will also have to acknowledge that,” Regner said.
