Thoughts about indexing family benefits: Are authorities permitted to apply the Austrian indexation of family benefits? The primacy of EU law and the right/obligation to request a ruling from the Court of Justice of the European Union

Abstract

Austria amended legislation, adjusting family benefits such as the family allowance and the deductible family allowance amount to the (lower) price level indices for consumer goods and services (indexation) of the State of residence of the child. This case is not a unique case. In the European Union, similar endeavours were envisaged in several Member States. The Austrian legislation, however, is now being challenged before the CJEU. In the authors’ opinion, this unsuitable cost-saving budget measure contradicts Union law. Consequently, the provisions concerned must remain unapplied. After all, since the Austrian legislation is obviously incompatible with primary Union law, authorities or courts are not even required to refer the matter to the CJEU.