Brussels, 06/11/2014 (Agence Europe) - A member state may apply the “anti-overlap rule” on the payment of social benefits preventively, without the need for proof that an unjustified overlap exists, the mere possibility that there is such an overlap being sufficient, ruled the Court of Justice of the EU (case C-4/13) on Thursday 6 November.
The case at issue involves a family who moved to Belgium from Germany. The wife is German and the husband Belgian. Since the wife continued to work in Germany and the husband worked in Belgium, the family qualified for child benefit for their son in both countries. However, since the overlap of the same benefits is not allowed, the family decided to draw the German benefit. The husband neither asked for nor received any Belgian benefit.
European Regulation 1408/71 states that, in cases such as this, it is the family's state of residence - that is, Belgium in this instance - that is primarily responsible for the payment of family benefits so as to avoid any possible unjustified overlap. On the basis of this rule, the German family allowance agency suspended benefit payment equivalent to what would be paid in Belgium, paying out only the difference between the two, despite the fact that the family had never, in fact, received any allowance in Belgium.
Does the member state in which someone works (in this instance, Germany) have such discretionary powers? That was the question put to the Court and the European judges ultimately followed the interpretation of the “anti-overlap rule” given in April of this year by Advocate General Melchior Wathelet (see EUROPE 11058). Thus, a member state of employment is justified in making provision in its legislation for suspension of the right to family benefits even where no application has been made in the member state of residence, provided that those involved have been duly and clearly informed beforehand of their rights. Since Germany met these conditions, its legislation is compatible with EU law, the Court ruled. (JK)