The European Court of Justice has ruled that indexation of child benefits in Austria is illegal. Big extras are imminent. And there are strong reactions.
It is indirect discrimination. And unlawful. That is the judgment of the Court of Justice. Adjusting the amount of family benefits, child tax credits and other family tax benefits for EU citizens who work in Austria but whose children live abroad is against Union law – krone.at reported.
Hundreds of millions in extra payments are threatened
Austria is threatened with additional payments of hundreds of millions. The responsible head of department, Minister of Family and Integration Susanne Raab (ÖVP), had already set aside a reserve of 220 million euros in May. “Of course the verdict has to be taken into account,” she said.
Raab sticks to it: ‘It would only have been fair’
“Nevertheless, I remain of the opinion that it would only be fair to adjust family benefits for children living abroad to the living conditions there. The ECJ has now decided otherwise and that is acceptable.”
The so-called indexing was a prestige project of turquoise blue under Sebastian Kurz. Benefits according to the cost of living in the country concerned. The goal was to save 114 million euros annually. The state spent 62 million less in 2019 than in 2018, 87 million less in 2020 and 141 million less in 2021.
Coalition partner welcomes ruling
It is a welcome statement for the Greens. Minister of Social Affairs Johannes Rauch: “The clarification contributes to social security and creates justice for all workers living in Austria. Thursday was also a “good day” for SPÖ and NEOS. It was a “huge success for families, women and children”.
Kickl wouldn’t pay anything
However, if FPÖ leader Herbert Kickl had his way, Austria would not pay a “penny” of child support for children living abroad. It is up to the nation states to decide for themselves. “There is no need for instructions from Brussels.”
Source: Krone
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