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EU foreigners working in Austria often receive fewer child benefits than Austrians. This is discriminatory, says the EU Commission and refers to the ECJ. The German government should also be interested in the trial.
The EU Commission is bringing Austria before the Court of Justice of the European Communities (ECJ) for the child benefit rules for EU citizens that have been in force since 2019. The rules are discriminatory and therefore , violate EU law, a spokeswoman for Brussels authorities said Thursday. In a first reaction, Austrian Family Minister Christine Aschbacher (ÖVP) defended the regulation of the Alpine Republic’s child benefit, which has already been discussed several times in Germany.
Tens of thousands of children get less money
In 2018, Austria decided to adjust the child benefit payments to the cost of living in the child’s country of residence. The indexation in force since 2019 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.
The basic amount of the family allowance in Austria is 114 euros for the first child from birth. According to the Labor Chamber, only 51.30 euros are paid for children living in Bulgaria through indexing. For children in Germany there are 111.40 euros. Germans in Austria, whose children continue to live in their homeland, receive 2.60 euros less for the first child due to indexation according to the Labor Chamber.
EU Commission sees discrimination
In the opinion of 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 because some mobile EU workers who fully contribute to Austria’s economy, employment and social security receive lower benefits than those whose children are in Austria live” The EU Commission said on Thursday. Indexing does not apply to Austrians working abroad for an Austrian authority and whose children live with them there, although their situation is comparable.
Austrian Minister for Family Affairs: “Question of justice”
The Alpine Republic continues to consider that the regulation is justified. “Due to the different cost of living in the EU, it remains a matter of justice for us,” Austrian Minister of Family Affairs Aschbacher stressed on Thursday. 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.
Similar regulations also discussed in Germany
In Germany, a procedure like that in Austria has also been discussed several times. The German authorities paid a child benefit of around 402 million euros abroad in 2018. According to the Federal Government, in 2012 this amount was around 75 million euros. In June 2018, the CSU submitted a request to the Federal Council to adjust the amount of the child benefit to the cost of living in the country in which the child lives. However, the Finance Committee decided to delay its work on the initiative indefinitely.
Austrian MEPs Andreas Schieder and Evelyn Regner (both SPÖ) described the decision of the EU Commission 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 this,” Regner stressed. The regulation of children’s benefits is antisocial and contrary to European law and ultimately only a relic from the time of the right-wing conservative government ÖVP-FPÖ in Austria. This has now been voted.
