The European Court of Justice (ECJ) ruled in a judgment released on Thursday that the structure of the previously established Bavarian family allowance is not compliant with EU law. Previously, the Bavarian state enforced a rule where parents whose children lived in certain member states received a smaller family allowance than those whose children resided in Germany or other member states. Generally, the family allowance amounted to €250 per month for the first and second child, and €300 starting from the third child. However, parents with children residing in different countries received significantly lower amounts in some instances. The European Commission had identified this practice as a breach of EU regulations concerning the coordination of social security systems and initiated an infringement procedure against Germany. The Court determined that the granting or amount of family benefits cannot be conditional on where the child lives. This practice constitutes indirect discrimination based on nationality because it disproportionately affects mobile workers whose children are more likely to reside in another member state. The disparity in treatment cannot be justified by the aim of ensuring equal treatment for recipients while taking into account varying living costs across member states.
Politics
