ADVERTISEMENT

Hungary starts infringement procedure against Austria over child benefit reforms

History

danielo/Shutterstock

Hungary initiated an infringement procedure against Austria on Tuesday over changes introduced by the government in Vienna to the country’s child benefit system, according to a report by Hungarian news agency MTI. 

Image: Shutterstock.com/danielo

The Hungarian government believes the new system, effective from January 1, could negatively affect thousands of Hungarians working in Austria whose children are still in Hungary, according to official sources. The changes, approved by the Austrian Parliament, mean that the level of child benefit will now be calculated according to living costs in the child’s country of origin and not those in Austria.

“The Hungarian government will turn to European Commissioner for Employment, Social Affairs, Skills and Labor Mobility Marianne Thyssen in order to start an infringement procedure against Austria because of its new family allowance regulation,” Pál Volner, state secretary at the Ministry of Justice, was cited as saying by MTI.

The reform has already been criticized by the European Commission, and the Austrian government has admitted that it could be blocked by the European Court of Justice (ECJ).

ADVERTISEMENT

OECD projects Hungary GDP growth will slow to 5% in 2022 Analysis

OECD projects Hungary GDP growth will slow to 5% in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.