WRITTEN QUESTION E-3845/02 by Ieke van den Burg (PSE)and Wilfried Kuckelkorn (PSE) to the Commission. European law aspects of German benefits to encourage private supplementary pension schemes.
Date: 2003-01-09
Institutions: European Parliament, Provisional data
Subjects: Germany, application of EU law, equal treatment, free movement of workers, frontier worker, interpretation of the law, social-security benefit, supplementary pension, tax relief

6.2.2004

EN

Official Journal of the European Union

C 33 E/25

Answer given by Mr Nielson on behalf of the Commission

(14 March 2003)

The Communication on Information and Communication Technologies (ICT) in Development highlights
the importance of ICT as an instrument in support of the six Community development priorities. ICTs are
a tool not a means in themselves.

the 9th European Development Fund (EDF), all

Indicative
In the framework of
Programmes contain references to ICTs. The Commission is now working with the competent regional
organisations to put into practice these components as far as possible. Moreover, as a follow up to the
Union-African, Caribbean and Pacific States (EU-ACP)
Joint Parliamentary Assembly and following a
request by the ACP Group, the Commission is preparing a feasibility study for an ACP ICT programme. As
a result of this study, an operational programme could be set up and implemented over the 9th EDF
implementation period.

the six Regional

the Community budget, budget

line B7-623 (Capacity building for information and
In terms of
communication technologies and sustainable energy), the Commission is presently finalising a contract
with the International Telecommunications Union to support several ICT programmes with a multiplier
effect. It will be focused on low-income countries, principally ACPs.

For Asia, the Mediterranean and Latin America, the Commission is implementing the Asia IT & C, Eumedis
and @LIS programs respectively. The first two programmes are near completion and a phase II is being
considered.

The Commission is also trying to develop operational guidelines on how to mainstream ICT in the six
focal sectors.

In parallel, under the World Trade Organisation (WTO) Doha Development Agenda, as well as in the
negotiations such as ACP-Union Economic Partnership Agreements, the Commission invites developing
countries to adopt appropriate regulatory frameworks and to allow private investment (whether local or
foreign) in the sectors that are key for the ICT sector: telecommunications, computer related services,
financial services, etc. Competition and investment in those sectors, along with financial and technical
assistance to help the implementation of appropriate regulation, would promote ICT infrastructure in those
countries and the development of e-commerce and e-government.

The Commission and Member States interact on ICT for development in the context of an expert group
that has now met
four times. The Commission, however, does not possess detailed and complete
information about Member States’ ICT for development programmes.

(2004/C 33 E/024)

WRITTEN QUESTION E-3845/02

by Ieke van den Burg (PSE)
and Wilfried Kuckelkorn (PSE) to the Commission

(9 January 2003)

Subject: European law aspects of German benefits to encourage private supplementary pension schemes

In Germany,

1.
there are a number of measures designed to encourage people to subscribe to
supplementary pension schemes (‘Zusatzversorgung’/‘Riesterrente’). The encouragement takes the form of a
basic benefit (‘Grundzulage’) and a child benefit (‘Kinderzulage’) to which German workers are entitled if
they subscribe to a supplementary pension scheme.

C 33 E/26

Official Journal of the European Union

EN

6.2.2004

Does the Commission consider that these benefits are social and/or tax advantages pursuant to Regulation
No 1612/68 (1) (Article 7(2))? If so, to what advantages is a frontier worker entitled who works in Germany
while residing in another Member State if he is liable to tax either without restriction or to a limited
extent?

2.
If a frontier worker who is covered by social insurance in Germany and is liable to tax without
restriction is entitled to the benefits to encourage subscription to supplementary pension schemes, is his or
her partner also entitled to the benefits if he/she does not work either in Germany or in his/her country of
residence?

3.
If a frontier worker is covered by social insurance in Germany but is not liable to tax there because,
under the terms of the double taxation convention between his country of residence and Germany, he is
not permitted to pay tax in Germany, is he nonetheless entitled to the ‘Grundzulage’ and/or ‘Kinderzulage’?

4.
If a frontier worker who is liable to tax either without restriction or to a limited extent is entitled to
the benefits to encourage subscription to supplementary pension schemes, is it permitted to terminate
these benefits or even demand their repayment if the frontier worker resigns from his job, is dismissed for
any reason, is declared unfit for work or retires?

(1) OJ L 257, 19.10.1968, p. 2.

Answer given by Mr Bolkestein on behalf of the Commission

(24 March 2003)

1.
Under article 7 of Regulation (EEC) No 1612/68 of the Council of 15 October 1968 on freedom of
movement for workers within the Community, migrant workers have the right to equal treatment in ‘tax
and social advantages’ as workers of the host Member State. The European Court of Justice has defined
these as: ‘all the advantages which, whether or not linked to a contract, are generally granted to national
workers primarily because of their objective status as workers or by virtue of the mere fact of their
residence on the national territory and whose extension to workers who are nationals of other Member
States therefore seems likely to facilitate the mobility of such workers within the Community (1).’
Grundzulage and the supplement Kinderzulage are to be regarded as such advantages, since they are linked
to contributions to occupational pension schemes. According to consistent case-law of the Court of Justice,
a frontier worker is entitled to the benefit of social advantages (2).

2.
As German legislation now stands, a non-resident partner also gets the benefits for a supplementary
pension scheme subscribed by himself, if the couple is treated as tax liable without restriction. This is the
case, if either the couple’s income is subject to German tax for at least 90 % or if the income not subject to
German tax does not exceed EUR 12 272.

In the view of the Commission, as a matter of Community law a non-resident partner is entitled to the
benefits if a German worker’s partner resident in Germany is also entitled to the benefits.

3.
Again, as German legislation now stands, the right to the basic allowance is linked to the status of
being subject to tax without restriction as referred to above. The supplement for children is granted only
for those children for which the general children’s allowance is paid.

In the view of the Commission, if the benefit in question is properly to be regarded as a social advantage
within the meaning of Article 7 of Regulation 1612/68 it should be granted without regard to tax status.

4.
If a frontier worker resigns from his job, is unemployed or incapacitated for work, he can claim
social advantages from the Member State of previous employment, in so far as they may be related to the
previous employment. In such circumstances Member States may not make payment of social advantages
subject to a residence condition and may not claim any repayment in so far as their legislation provides for
the recovery of such benefits on emigration.

(1) Case C-85/96, Martinez Sala ECR, [1998] I-02691.
(2) Case C-35/97 Commission v. France ECR [1998] I-5325.