Germany to crack down on benefits tourism
Reforms said to be inspired by Cameron deal will link payments to cost of living in migrant’s home country
By in Berlin GERMANY is to press for radical changes to the way it pays child benefit to workers from other European Union countries in an attempt to curb benefits tourism.
The reforms, aimed at those who work in Germany but claim benefits for children living in their home countries, are inspired by the deal David Cameron was offered in the run-up to the Brexit vote. Under a draft law being prepared, the level of benefit would be linked to the cost of living where the children actually live.
A Polish citizen living and working in Germany but claiming benefit for a child in Poland would see his payments halved from €192 (£163) a month to €96.
But Angela Merkel’s government may have a fight on its hands to implement the reforms, which are illegal under EU law. Germany is lobbying to have the rules changed but is facing opposition from the European Commission.
The German finance ministry believes the reforms could save €159m a year. The country pays benefits for more than 184,000 children living in other EU member states, mainly Poland, Romania and Croatia.
Under current EU rules, member states must pay child benefits at the same level regardless of where the child actually lives. The reforms are es- sentially the same as the deal the EU offered Mr Cameron last year as part of his ill-fated Brexit renegotiation. But the deal was quietly dropped after the referendum result and the Commission now opposes Germany’s plans.
A spokesman for the German finance ministry said: “In February 2016, European leaders agreed to allow differentiation of child benefits for citizens of another member state in the event of Britain remaining in the EU.
“The European Commission was supposed to present a proposal to amend EU law accordingly. But after the results of the referendum, the Commission has regrettably refrained from doing so.”
The Germany is lobbying the Commission to follow through with the reforms proposed under the Cameron deal.
But that deal was only agreed in order to avert Brexit under strong protest from several countries, and opposes it.
Marianne Thyssen, the commissioner for employment and social affairs, said: “We take note of Germany’s position. Nevertheless, I am convinced that our proposal, which keeps child benefits untouched, is a balanced one.
“It is only fair that workers receive the same social benefits when they have contributed to the tax and social system in the same way as nationals have.
“Less than 1 per cent of EU child benefits in the EU are exported to other Member States. In the same way that I do not believe there are second-class workers, I do not believe in second class children.”