Family allowances: the EU indexing procedure is threatened

The Commission "will not hesitate to use their opportunities as guardian of the contracts", said the spokesman of the European Commission, Christian Wigand, at the request. The fact that European legislation does not allow indexing has also been confirmed by the European Court of Justice (ECJ). "It's a question of fairness: if workers pay their contributions to the national welfare system, they can expect to receive the same help," said spokesman for the Commission. European.

Shortly before, indexing with the votes of the ÖVP and FPÖ had been decided in the evening. In the future, the benefit will be adapted to the cost of living in the country where the child lives of a person employed in Austria. The European Commission had already announced in advance that it would examine the Austrian regulation on European conformity. The government is calling for an opinion from labor lawyer Wolfgang Mazal.

Animated debate at the National Council

The indexing also provoked a heated debate in the afternoon at the National Council in Vienna. The new regulation will provide greater support for Western Europeans, while Eastern Europeans will have to accept considerable losses. Most importantly, nurses in Eastern states are particularly affected by this situation, while organizations and the opposition warn of the need to care for children 24 hours a day.

Family Minister Juliane Bogner-Strauß (ÖVP) and her deputy, Norbert Sieber, replied that the subsidy would continue to be higher than that of the country even after indexation. The new regulation was in line with European law, according to representatives of the ÖVP and the Free Member Edith Mühlberghuber, referring to the opinion of Mazal. Respect for the law is "extremely important for the government," said Bogner-Strauß. The EU, for its part, has granted such a regime to Britain before Brexit, which should therefore be allowed under European law, according to Sieber.

NEOS warns of additional claims

There is a great deal of doubt among the opposition. Mandate of NEOS Michael Bernhard reminded that in the matter of free movement of workers, open and concealed discrimination against workers of other states was prohibited. Bernhard therefore sees the risk of very high additional demands if the indexation is canceled.

Mushroom representative Daniela Holzinger-Vogtenhuber asked why the government was not fighting for a change at the EU level instead of risking an infringement procedure. Higher family allowances are also considered by nurses 24/24 as a salary component, if they were paid at 2 euros per hour for their services.

SPÖ: lowest cut

SPÖ's representative, Eva Maria Holzleitner, also expects problems in the health care sector, which has also criticized cuts, especially among the weakest in society. On the one hand, the government talks about the merit of performance, then indexes those who contribute to the Austrian tax system with their work.

Bogner-Strauss in turn discussed with the cost factor. The indexing would save more than 100 million euros, which could be used by Austrian families. The minister sees no discrimination: "We treat all children equally, it only depends on where they live."

Strong criticism of MEPs

MEPs from opposition parties also criticized Chancellor Sebastian Kurz (ÖVP) and Vice Chancellor Heinz-Christian Strache (FPÖ). The vote to index family allowances was "a black hour for the Republic of Austria," said Angelika Mlinar (NEOS), Evelyn Regner (SPÖ) and Monika Vana (Greens).

One of the pillars of the internal market, the free movement of people, was "consciously opposed". It was also a miracle debate on the backs of the poorest in society. The decision is a "much more anti-European and nationalistic measures" of the federal government of the ÖVP and the FPÖ. For example, reference is made to the extension of border controls to Slovenia.

Karas also against a new indexation

The head of the OVP delegation, Othmar Karas, also complained about the law. The scheme will end up in the ECJ because it is illegal. The responsible European Commissioner, Marianne Thyssen, has stated on several occasions, Karas stressed. The case-law of the European Court of Justice has also been clear for decades. He emphasized for years and "has been promoting that not only does Austria fully respect and defend European law and European values," said Karas.