Current legal situation: Free movement of workers in the EU
The free movement of workers is a fundamental principle of the European Union. It allows all EU citizens to travel, live and work in any member state without a visa - and without an additional work permit.
The following applies in Germany:
- Anyone who works in Germany is generally entitled to social benefits (e.g. citizen's allowance) if their income is not sufficient to cover their living expenses. This also applies to EU citizens who work in Germany. They can receive citizen's allowance as a top-up.
- Without work, EU citizens only have limited entitlement to citizens' benefits in Germany. In the first three months of residence, there is generally no entitlement to social benefits. After that, only if there is a real prospect of work or if employment has been taken up.
Even part-time or marginal employment (mini-job) is enough to be entitled to supplementary citizens' income. It is precisely this regulation that Carsten Linnemann (CDU) criticizes. Due to the increasing number of foreign citizenship benefit recipients in Germany, the CDU Secretary General is therefore calling for the EU rules on the free movement of workers to be tightened.
Linnemann calls for stricter citizens' income rules for EU citizens
According to the CDU politician, the current legal situation is being deliberately exploited. According to Linnemann, false employment contracts or mini-jobs are used to fraudulently claim benefits . He calls for this to be prevented:
- A new definition of the term "employee" at EU level: only those in full-time employment should receive a citizen's allowance. Part-time or mini-job activities should no longer qualify for the citizen's allowance in future.
- Tougher action against undeclared work: Employers who illegally employ people from another EU member state will in future be liable for illegally paid benefits.
Federal Minister of Labor Bärbel Bas (SPD) also announced her intention to take stronger action against benefit abuse. Among other things, a "competence center for benefit abuse" is planned at the Federal Employment Agency to better record and coordinate cases of abuse. The exchange of data between immigration authorities, job centers and security authorities is also to be improved.
Why EU law is crucial
However, the change to the definition of employee called for by Linnemann concerns EU law. This is because the free movement of workers is enshrined in the EU treaties and is substantiated by several EU directives and rulings of the European Court of Justice (ECJ).
This means that Germany cannot decide on its own to define the term "employee" more narrowly. If the German government were to restrict the entitlement to citizens' allowance for EU citizens strictly to full-time work, this would be contrary to European law and could fail before the ECJ.
A change would have to be made at EU level:
- EU Commission proposal for a new directive or regulation
- Approval by the EU Parliament and EU Council, in which all Member States are represented
- Transposition into national law through a new law
How do other EU countries implement the regulation?
The EU rules are basically the same for all member states - but the countries implement them with varying degrees of strictness.
- France: EU citizens are entitled to social assistance if they are legally resident in the country and are actually working or can prove that they are looking for work. Those who remain without a job for longer can lose their entitlement.
- Austria: Austria has tightened the rules for minimum income support - now called "new social assistance" - several times. As a rule, EU citizens only receive unrestricted social assistance if they can provide proof of employment or fulfill certain residence requirements. Despite this, the Austrian regulations have had to be amended several times following appeals to the ECJ.
- Denmark: Has tried to link access to social benefits to long periods of residence. Here, too, adjustments had to be made following ECJ rulings.
- Germany: has implemented the EU rules comparatively generously. Even marginal employment is enough to qualify as an employee and thus receive a supplementary citizen's allowance.
Debate also about citizens' income for Ukrainians
At the same time, the German government is planning a citizen's allowance reform for refugees from Ukraine. Currently, Ukrainians in Germany receive a citizen's allowance on the basis of the Mass Influx Directive(Section 24 Residence Act) if they are in need. In future, however, all those arriving in Germany after April 1, 2025 will only receive benefits in accordance with the Asylum Seekers' Benefits Act.
This means lower standard rates (441 instead of 563 euros for single people) and limited healthcare benefits. It is not known when the new law will come into force - but it is likely to be by the end of the year. For all Ukrainians who arrived in Germany before the deadline, however, nothing will change.
Conclusion
The Union's call for a narrower definition of the term "employee" affects not only Germany, but EU law as a whole. It could therefore only be implemented through an EU-wide reform - a process that would be politically difficult and time-consuming.
In the short term, measures within Germany are more conceivable, such as better controls, tougher action against undeclared work or improved data exchange between job centers, immigration authorities and customs.
For those affected, this means that EU citizens working in Germany will continue to be entitled to supplementary citizens' income for the time being. Changes would only be possible with approval at EU level and would take time.
