Judgment — ECLI:EU:C:2014:278
Date: 2014-04-30
Language of the case: German
Court formation: Ninth Chamber
Subject matter: Social security for migrant workers
Procedure: Reference for a preliminary ruling
Origin: Germany

Summary — Judgment of the Court (Ninth Chamber), 30 April 2014 1. Social security — Migrant workers — Financial provisions — EU rules on currency conversion — Family benefits due to a cross-border worker having members of his family resident in a Member State other than the State of employment — Currency conversion of family allowances for the purposes of the calculation of the differential supplement of those allowances under Article 10(1)(a) of Regulation No 574/72 — Rules applicable before the amendment of Regulation No 574/72 by Regulation No 987/2009 (EC/Switzerland Agreement on the free movement of persons, Annex II, Art. 1(1); European Parliament and Council Regulation No 883/2004 and No 987/2009, Art. 90; Council Regulation No 574/72, Arts 10(1)(a) and 107(1) and (6); Decision No 1/2012 of the EEA Joint Committee) 2. Social security — Migrant workers — Financial provisions — Family benefits due to a cross-border worker having members of his family resident in a Member State other than the State of employment — Currency conversion of family allowances for the purposes of the calculation of the differential supplement of those allowances under Article 10(1)(a) of Regulation No 574/72 — Receipt at the official exchange rate on the day of payment of those allowances by the State of employment (Council Regulation No 574/72, Arts 10(1)(a) and 107(6)) 1. Where a Member State family benefits agency has granted and paid as compensation dependent child allowances after deducting Swiss family allowances, the currency conversion of the Swiss family allowances due for the period between 1 June 2002 and 31 March 2012 to a cross-border worker, whose family members reside in a Member State other than the State of employment, for the purposes of the calculation of a differential supplement to those allowances under Article 10(1)(a) of Regulation No 574/72 laying down the procedure for implementing Regulation No 1408/71 must be carried out in accordance with Article 107(6) of that regulation, in the version amended and updated by Regulation No 118/97, as amended by Regulation No 1386/2001. It is apparent from Article 1(1) of Annex II to the Agreement between the European Community and its Member States and the Swiss Confederation on the free movement of persons, read in conjunction with Decision No 1/2012 of the EEA Joint Committee instituted by the Agreement between the European Community and its Member States and the Swiss Confederation on the free movement of persons of 31 March 2012 replacing Annex II to that Agreement on the coordination of social security systems, that, in the context of the coordination of the benefits covered by that agreement, Regulations No 1408/71 and No 574/72 apply during the period from 1 June 2002 to 31 March 2012. However, as from 1 April 2012, Regulations No 883/2004 on the coordination of social security systems and No 987/2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems apply. Consequently, the family benefits paid by the Swiss State in relation to the period from October 2006 to November 2011 must be carried out under Article 107 of Regulation No 574/72 relating to the conversion of benefits covered by Regulations No 1408/71 and No 574/72, and not on the basis of Article 90 of Regulation No 987/2009 since, according to the wording of that provision, it applies only to the application of Regulations No 883/2004 and No 987/2009. In addition, since Article 107(6) of Regulation No 574/72 must, according to its wording, apply in cases not covered by Article 107(1) of that regulation, it governs the currency conversion of the abovementioned benefits. (see paras 31-33, 36, 40, operative part 1) 2. Article 107(6) of Regulation No 574/72 relating to the conversion of benefits covered by Regulations No 1408/71, in the version amended and updated by Regulation No 118/97, as amended by Regulation No 1386/2001, must be interpreted as meaning that the currency conversion of family allowances due to a cross-border worker whose family members reside in a Member State other than the State of employment, for the purposes of calculating the differential supplement to family allowances under Article 10(1)(a) of that regulation, must be made at the official rate of exchange for the day on which those allowances are paid by the Member State in which the worker is employed. Since the wording of Article 107(6) of Regulation No 574/72 unconditionally links the conversion of benefits to the official rate of exchange on the day of ‘payment’, it must be read as referring to the conversion of benefits which are paid by the State of employment, as that payment is made in all circumstances, whereas the benefits provided for by the State of residence are paid only in specific circumstances, and is therefore conditional and uncertain. Moreover, such an interpretation guarantees the effectiveness of the rules against overlapping benefits, such as the rule laid down in Article 10(1)(a) of Regulation No 574/72, which seek to ensure that the person entitled to benefits paid by several Member States receives a total amount of benefits which is equal to the amount of the most favourable benefit to which he is entitled under the legislation of a single Member State. (see paras 45, 46, 48, operative part 2)