EU Commission to Sue Germany Over Family Allowance

Published: 2024-07-25

The European Commission is set to sue Germany over its family support scheme in Bavaria, known as the Bavarian Family Allowance.

This allowance is provided to families with young children regardless of income or employment status.

However, the Commission argues that the scheme discriminates against mobile workers, particularly EU citizens whose children live in countries with lower living costs.

The Commission has previously expressed concerns about this issue, and since Germany has not adequately addressed them, it has decided to escalate the matter to the European Court of Justice (ECJ).

If the court rules in favor of the Commission, Germany could face significant fines.

This case follows a similar ruling against Austria for its family support policies, and the Commission is also considering legal action against Italy for comparable reasons.