WRITTEN QUESTION E-2668/00

by Ria Oomen-Ruijten (PPE-DE) to the Commission

(1 September 2000)

Subject: German legislation concerning child allowances with regard to Regulation (EEC) No 1408/71

In many cases, the German authorities (Family Allowances Service) do not pay any additional child benefit in instances where both parents living in Germany are employed as wage-earning frontier workers in the Netherlands.

The German authorities base their decision on Article 13 of Regulation (EEC) No 1408/71, taken in conjunction with the German Income Tax Law (§65 EstG).

The same problem affects single women who live in Germany and work as wage-earning frontier workers in the Netherlands.

Are such decisions in compliance with Regulation (EEC) No 1408/71?

If not, what action will the Commission take to solve these problems?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(16 October 2000)

The Honourable Member raises a question concerning the failure of the German authorities (family allowance services) to pay additional child benefits in cases where both parents, who reside in Germany, are employed as wage-earning frontier workers in the Netherlands and whether this is compatible with Community law.

Community law in the field of social security, in particular Council Regulation (EEC) No 1408/71(1) coordinates, but does not harmonise, national social security systems in order to ensure that migrant workers and their family members do not lose their social protection when moving within the Community.

Article 13 of the above Regulation provides that in principle a person employed in the territory of one Member State, e.g. the Netherlands, shall be subject to the legislation of that Member State only, even if he resides in the territory of another Member State, e.g. Germany.

With regard to family benefits, which also include child benefits, it is provided that if the family members do not reside in the Member State under whose legislation the employed person is insured, in this case the Netherlands, this person is entitled to family benefits as if the members of the family resided in this Member State. If entitlement to benefits exists under the legislation of several Member States, there are provisions which ensure that employed people receive the highest amount of benefits provided under the legislation of one of these Member States.

However, Article 65 of the German income tax law (Einkommenssteuergesetz) rules out any entitlement to child benefits in Germany, if there is an entitlement to such benefits outside Germany.

As Community law only coordinates national social security systems, each Member State remains responsible for its own social security system and decides which benefits shall be provided, the conditions for eligibility and the value of these benefits. Therefore, in this case, there seems to be no contradiction with Community law.

(1) Last consolidated version: Council Regulation (EC) No 118/97 of 2 December 1996 amending and updating Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community and Regulation (EEC) No 574/72 laying down the procedure for implementing Regulation (EEC) No 1408/71 (OJ L 28, 30.1.1997).