Free movement of workers under challenge: the indexation of family benefits

Abstract

This paper traces the political debate about the export and the indexation of family benefits in the European Union (EU). We ask why such a technical legal issue has become salient in several EU member states. Explanations building on financial and political justifications prove to be insufficient. Rather, we argue, indexation has to be understood in the broader context of the contestation and constitutionalization of the free movement of workers. Free movement and equal treatment of workers have become contested with Eastern enlargement, but their legal framework is largely removed from political adjustments as it is constitutionalized in the Treaties and progressively interpreted by the Court of Justice (CJEU). At least symbolically, indexation promises to address these economic and legal challenges and serves as an “outlet” for member state governments. We illustrate our argument with empirical evidence from the debates preceding the Brexit referendum and the Austrian reform of family benefits.