Overview
- Germany lost a case Thursday at the European Court of Justice, which ruled that Bavaria’s Familiengeld breaches EU law after a complaint from the European Commission.
- The court found that reducing payments when a worker’s child lives in lower‑cost EU countries discriminates against mobile workers who also fund the system through taxes and contributions.
- The allowance paid €250 per month for a first or second child and €300 from the third, but Bavaria applied lower rates for children residing in selected EU member states.
- Bavaria said it will apply the judgment, which means ending the indexation for ongoing cases while the program itself now covers only children born before 2025 as the state shifts money to daycare.
- Key questions now involve possible back payments and national steps to align rules, with a 2022 ruling against Austria on similar indexing providing the template.