Planned cuts for Poles and Romanians: CDU intervenes in child benefits
The CDU (Christian Democratic Union) plans a significant reduction in child benefits for families residing in EU countries with low living costs such as Poland, Romania, and the Czech Republic. This step aims to align these benefits with local living costs.
In Berlin and Munich, political tensions have escalated, especially after a controversial ruling in July 2024, where the European Commission threatened legal action against Germany for its practice of reducing family benefits for expatriates. The European Commission argued that families should receive equal payments, regardless of their country of residence. For example, instead of the full amount of 250 euros for children in Romania, only 125 euros were sent due to lower living costs.
This initiative is led by Carsten Linnemann, the general secretary of the Christian Democratic Union, within his strong faction in North Rhine-Westphalia, who will present a proposal during the party's federal conference at the end of February. He pointed out that fraud related to child benefits has been increasing and emphasized the need to adjust benefits based on the cost of living in the countries where families reside.
The exact financial implications of these changes remain unclear. In 2025, over half a billion euros in child benefits were transferred to foreign accounts, benefiting around 255,000 children. However, these figures do not necessarily indicate that all beneficiaries live in the European Union, as some may be German citizens residing abroad or foreign workers in Germany sending money home. Some within the Christian Democratic Party have speculated about potential fraudulent schemes involving heads of households in Germany benefiting from these allowances.
Research from the German Institute for Economic Research for "Bild am Sonntag" examined the fairness of the social system in Germany and provided insights into the contributions of high-income earners versus the benefits derived from the system. The results showed that high-income earners contribute significantly more than the assistance they receive, while low-income individuals disproportionately benefit from government support.
The Lineman plan includes integrating data from records, family benefit offices, and social services to identify fraud. The Christian Democratic Party calls for stricter penalties for those caught committing fraud, including faster deportation of EU citizens and potential entry bans.