Brussels (The Brussels Morning Newspaper) – The EU Commission referred Germany and Italy to the Court of Justice for discriminating against mobile workers regarding family benefits, violating EU social security and free movement laws.
The European Commission chose to refer Germany and Italy to the Court of Justice of the European Union for their inability to support the rights of mobile workers from other EU Member States considering the amount of family benefits given to them. This neglect to uphold the rights of mobile workers forms discrimination and breaches EU law on social security coordination on the free movement of workers and the Treaty on the Functioning of the European Union.
How do Germany’s family allowances violate EU law?
Germany introduced Bavaria in 2018 a new scheme of family allowances for residents of Bavaria with young children (up to 3 years old). Under this project, EU nationals whose children reside in a Member State where the expense of living is lower than in Bavaria accept only a reduced amount of the benefit.
The EU Commission discovered that this scheme is not consistent with EU law as it contrasts against EU mobile workers. One of the fundamental regulations of the EU is that people are treated equally without any discrepancy based on nationality. Following this basic principle, EU mobile workers who assist in the same way to the social security system and spend the same taxes as local workers are qualified for the same social security benefits. Therefore, EU mobile workers, whose children reside permanently in another Member State, should obtain the same amount of family advantages as other workers in Bavaria.
How does Italy’s family benefits scheme discriminate?
Italy introduced in March 2022 a new strategy of family allowances for dependent children (“Assegno unico e universale per i figli a carico”). Under this plan, workers who do not reside for at least two years in Italy, or whose kids do not reside in Italy, are not qualified to receive the benefit.
What is the impact on EU mobile workers?
The EU Commission finds that this system is not compatible with EU law as it contrasts against EU mobile workers. One of the basic principles of the EU is that people are ministered equally without any distinction based on nationality. Following this fundamental principle, EU mobile workers who contribute in the same manner to the social security system and spend the same taxes as local workers are permitted to the same social security benefits.
According to the principle of equal treatment, EU mobile workers who operate in Italy without living there, those who have pushed only recently to Italy, or those whose children reside in another Member State, should accept the same family benefits as other workers in Italy. Moreover, the regulation of the export of benefits in the Regulation on Social Security Coordination forbids any residence condition for receiving social security benefits such as family benefits.
