Regulation in Bavaria - The EU Commission will sue Germany over family benefits
Due to allegedly discriminatory family benefits in Bavaria, Germany, the EU Commission will sue Germany before the European Court of Justice (ECJ). Specifically, this concerns support payments for families with small children in Bavaria, also known as the Bavarian family allowance. It is paid independently of income, employment status, and type of care.
EU citizens, whose children live in a Member State where living costs are lower than in Bavaria, receive lower benefits instead. The EU Commission sees this as discrimination against mobile employees and a breach of EU law on the coordination of social security systems. The Commission had already expressed its concerns. Since Germany has not sufficiently addressed these concerns, the Commission has now decided to refer the case to the ECJ, the authority announced.
If the Federal Republic does not yield in this dispute, there will be a proceeding before the ECJ. If the Commission wins, Germany will have to account for a significant fine. The ECJ decided in June 2022 that a similar regulation in Austria violated EU law.
The EU Commission intends to sue Italy in a similar case. According to Brussels authorities, a family benefit for maintenance-entitled children was introduced in Italy approximately two years ago. Employees and employees who had not lived in Italy for at least two years or whose children lived in another country did not have a claim to it, according to the Commission's assessment. This regulation also allegedly violates EU law.
- The European Commission believes that the disparity in family benefits between Bavaria, Germany, and other EU Member States, specifically in regards to the Bavarian family allowance, constitutes a breach of EU law on the coordination of social security systems.
- The family allowance in Bavaria, which is paid independently of income, employment status, and type of care, has led to EU citizens with children residing in lower-cost Member States receiving lower benefits compared to their German counterparts.
- The European Union, through the European Commission, views this as discrimination against mobile employees and has expressed its concerns to the German government, but Germany has yet to adequately address these issues.
- Similarly, Italy is facing lawsuit from the European Commission for introducing a family benefit for maintenance-entitled children, excluding employees and those who had not lived in Italy for at least two years or whose children lived in another country.
- The European Court of Justice (ECJ) decided in June 2022 that a similar regulation in Austria violated EU law, setting a precedent for the upcoming cases in Germany and Italy.
