The European Court of Justice (ECJ) ruled in a judgment published on Thursday that the structure of the previously abolished Bavarian family allowance was incompatible with EU law. The Bavarian regulation stipulated that parents whose children resided in certain member states would receive a lower family allowance than those whose children lived in Germany or other member states. Generally, the allowance stood at €250 per month for the first and second child, and €300 starting with the third. However, significantly reduced amounts were paid for children residing in other countries. The European Commission had previously viewed this practice as a breach of Union regulations concerning the coordination of social security systems and filed an infringement action against Germany. The Court determined that the granting or the level of family benefits cannot be made dependent on the child’s place of residence. This practice constitutes indirect discrimination based on nationality, as it particularly affects migrant workers whose children are more likely to live in another member state. Furthermore, the varying treatment could not be justified with the objective of ensuring equal treatment for beneficiaries while taking into account varying costs of living across member states.
Bavarian Family Allowance Challenged For Violating EU Law
