Commissioner Thyssen categorically opposes introduction of indexation for family allowances in coordination of social security systems

During a seminar on the European Semester budget process on Tuesday 6 March, the European Commissioner for Employment and Social Affairs, Marianne Thyssen, expressed her categorical opposition to attempts by some member states and MEPs to introduce indexation for family allowances in to the regulation on the coordination of social security systems.

The Commissioner pointed out that she was completely opposed to the concession offered to former British prime minister, David Cameron, to introduce an indexation for family allowances based on where the children are living, ahead of the vote on Brexit (see EUROPE 11493).  She stated, “I was not happy with the result of the Brexit, but for one little detail I was not unhappy, that I did not have to introduce this in my proposal”.

For the Commissioner, things are quite clear, she will do nothing to facilitate this introduction, for two reasons: she considers it unfair. If a citizen pays his contributions and taxes in a member state, he must be able to benefit from the same benefits as the other nationals do. “I am for same contributions, same pay to the system, same benefits”, she declared.  The Commissioner also said this would make the system complicated and would involve a comparison of the standard of living in each member state compared to all the others, as well as for their respective citizens. She said that this would be, “an administrative nightmare” and highlighted the possible abuses such a system would create, particularly at a cross-border level, as well as for children who have finished their studies.

Several member states want to introduce this indexation, including Austria, which will be taking over the rotating Presidency of the Council of the EU during the second half of 2018. The project, however, was abandoned during the Employment and Social Affairs Council in December (EPSCO) (see EUROPE 11922).  At the European Parliament, however, the shadow rapporteur, Sven Schulze (EPP, Germany), is in favour of it (see EUROPE 11971).  (Original version in French by Pascal Hansens)