EU Court of Justice rules that Austria has illegally cut the allowances for Romanian children working in this country

The Court of Justice of the European Union ruled on Thursday that Austria had illegally cut the allowances for Romanian children working in this country, the Ministry of Foreign Affairs announced. The CJEU’s decision comes after the European Commission launched an infringement procedure against Austria in 2019 for the controversial law on adjusting allowances for children of foreign workers who do not live with their parents on Austrian territory.

According to the MFA, the Court of Justice of the European Union (CJEU) ruled on Thursday, June 16, 2022, its judgment in case C-328/20, European Commission (Commission) v. Austria, an action for failure to fulfill obligations by that Member State provided by Regulation no. 883/2004 on the coordination of social security systems, as well as Regulation no. 492/2011 on the free movement of workers within the Union.

“The ECJ found, in essence, that by establishing a mechanism for adjusting family allowances and tax credits for the dependent child, applicable to workers whose children are permanently resident in another EU Member State, Austria has breached under Regulation no. 883/2004 and of the Regulation no. 492/2011 ″, said the Ministry of Foreign Affairs.

The CJEU also found that by introducing a “plus” family bonus adjustment mechanism for migrant workers whose children are permanently resident in an EU Member State other than Austria, a tax credit for self-employed persons earning a couple’s income. , the tax credit for self-education of a child and the tax credit for maintenance, Austria has breached its obligations under Regulation No. 492/2011.

“The decision of the CJEU is in line with the position constantly expressed by Romania on the issue of indexation of allowances for non-resident children. In fact, Romania, through the Ministry of Foreign Affairs – the Government Agent for the CJEU, intervened in case C-328/20, in support of the European Commission “, the representatives of the ministry specified.

The EU has started infringement proceedings against Austria since 2019

The decision to reduce the allowances paid by the Austrian state to EU citizens whose children are in their home countries was taken by the Vienna Parliament on 24 October 2018 and entered into force in early 2019.

The new normative act reduced from 172 euros to 85 euros the amount of monthly benefits paid by Austria for a three-year-old Romanian child and to 97 euros for a three-year-old Hungarian child.

In 2019, the European Commission launched an infringement procedure against Austria for the controversial law on adjusting allowances for children of foreign workers who do not live with their parents in Austria.

Editor: IC

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