Ref. Ares(2018)3747394 - 13/07/2018
MARIANNE THYSSEN
MEMBER OF THE EUROPEAN COMMISSION
Brussels,
Dear Ministers,
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Thank you for your recent letter in which you argue that family benefits paid to children
residing in another Member State should be indexed to take account of the cost of living
in the Member State of residence of the children concerned.
In your view, it would not be fair to require family benefits to be paid in filli to Member
States where the value of these benefits is worth more than in the country that pays them.
You indicate that when Member States make the amount of the family benefits dependent
on the parents' income, other Member States that are secondary competent for a mobile
worker may have to pay the full amount of family benefits rather than only a differential
supplement. You take the view that such situations would be inconsistent with the rules
of Regulation (EC) No 883/20014 and should be tackled at European level.
As you know, the Commission's proposal for a revision of the EU rules on social security
coordination does not include any indexation of family benefits. Moreover, the Council
adopted a general approach on this revision at the last EPSCO that does not provide for
such indexation.
The Commission remains convinced that the current system for the export of family
benefits is fully based on fairness. When a mobile worker contributes through
contributions or taxes in the same way as local workers, he or she should be entitled to
the same benefits regardless of the place of residence of his or her children. This principle
of fairness is at the core of our single market and complements the principle of the same
pay for the same job at the same place.
The situations you describe do not constitute a reason for introducing a system of
indexation of child benefits in the secondary competent Member State, as this would be
contrary to equal treatment. If mobile workers contribute in that Member State in the
same way as local workers, they and their children should not be discriminated as
compared to local workers and their children.
The proposal to revise the rules on social security coordination is a legislative priority
and the Commission will do all it can to make sure that this reform will be adopted as
soon as possible before the end of this mandate. I look forward to continuing this work
during the upcoming inter-institutional negotiation.
Yours faithfi
Mr Troels Lund Poulsen, Minister for Employment, Denmark
Dr. Juliane Bogner-Strauss, Federal Minister for Women, Families and Youth, Austria
Mr Hubertus Heil, Federal Minister of Labour und Social Affairs, Germany
Mr Wouter Koolmees, Minster for Social Affairs and Employment, The Netherlands
Ms Regina Doherty, Minister for Employment and Social Protection, Ireland
Electronically signed on 13/07/2018 14:53 (UTC+02) in accordance with article 4.2 (Validity of electronic documents) of Commission Decision 2004/563
ADDRESS: EUROPEAN COMMISSION, B-104Ü BRUSSELS - TELEPHONE: 32.2.295 54 91 - E MAIL: marianne.thyssen®ec.europa.eu