18-11-2014

EU law. The refusal to grant social benefits to foreigners.

On 11.11.2014, the Court of Justice delivered a judgment concerning social benefits for foreigners seeking employment in the host country.

In Case C-333/13 a Romanian citizen challenged the decision of Jobcenter Leipzig because her application for social benefits was refused.

According to the Social Code SGB Erstes Buch (Sozialgesetzbuch Erstes Buch) jobseekers are entitled to two types of benefits:

- "benefits for integration into the labour market,

- benefits to cover subsistence costs."

The Court stated that “article 24(1) of Directive 2004/38 provides that all Union citizens residing on the basis of the directive in the territory of the host Member State are to enjoy equal treatment with the nationals of that Member State.” At the same time, the Court states that “a Union citizen can claim equal treatment with nationals of the host Member State only if his residence in the territory of the host Member State complies with the conditions of Directive 2004/38.”

As a result of the mentioned conditions, the Court focused on art. 7 paragraph. 1 point b) of the Directive, which states that inactive persons are entitled to social benefits only if they possess sufficient resources to enter the country. Indeed, this article aims to counter the use of welfare by foreigners who are not in work, in order to secure their livelihood.

Regarding the applicant's failure to meet the above condition, the Court held that Article. 24 paragraph. 1 of Directive 2004/38 does not preclude the exclusion of foreigners from certain social benefits, in the case where the parties are not entitled to a right of residence on the basis of 2004/38 in the host country.

Mariusz Gładysz