Highlights of the Case
It is important to note that the case concerns legislation of the German state of Bavaria.
In 2018, Bavaria introduced a new family allowance scheme (Bayerisches Familiengeld) for parents resident in Bavaria with children aged between 13 and 36 months. However, if the children of EU nationals insured under the German social security system in Bavaria resided in another EU member state, the amount of this family allowance was reduced according to the cost of living in the child’s country of residence.
As a result, EU nationals contributing to German social security on the same basis as local workers did not receive the same family allowance if their children lived in another EU country.
The European Commission took the view that this Bavarian law discriminated against mobile EU workers on grounds of nationality and thus breached EU law. When Bavaria and Germany did not bring the measure into line with EU rules, the Commission brought infringement proceedings against Germany before the CJEU.
The CJEU’s findings on free movement and equal treatment:
The court recalled that benefits such as Bayerisches Familiengeld qualify both as “family benefits” under EU regulation for social security (883/2004/EC) and as “social advantages” under Article 7(2) of EU regulation on free movement of workers (492/2011/EU).
It held that the Bavarian scheme introduced a residence‑based difference in treatment that predominantly affected migrant workers, amounting to indirect discrimination on grounds of nationality. The court found that this difference in treatment was not objectively justified in light of the stated objectives and the nature of the benefit, and was therefore contrary to Article 45 TFEU, Article 4 of Regulation 883/2004 and Article 7(2) of Regulation 492/2011.
