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EU court ruling backs curbs on 'benefit tourism' EU court ruling backs curbs on 'benefit tourism'
(about 1 hour later)
The European Court of Justice has ruled that unemployed EU citizens who go to another member state to claim benefits may be barred from some benefits. The European Court of Justice has said unemployed EU citizens who go to other member states just to claim benefits may be refused some state help.
The ruling on so-called "benefit tourism", relating to a case in Germany, could set an important legal precedent for the rest of the EU.The ruling on so-called "benefit tourism", relating to a case in Germany, could set an important legal precedent for the rest of the EU.
It could allow the UK to exclude some unemployed migrants from receiving some benefits such as jobseeker's allowance.It could allow the UK to exclude some unemployed migrants from receiving some benefits such as jobseeker's allowance.
David Cameron is looking a range of options to curb EU migration. Downing Street welcomed the ruling, saying it backed the PM's position.
The government has already tightened the rules on the ability of new EU migrants to claim certain benefits for the first three months after they arrive in the UK. The government has already tightened the rules so EU migrants have to wait three months after arriving in the UK before they can claim child benefit and child tax credits.
Migrants are also barred from claiming Jobseekers Allowance after three months if they are not looking for work.
The prime minister has said he wants to go further and will set out his plans in a speech before the end of the year, amid pressure from Conservative backbenchers to act.The prime minister has said he wants to go further and will set out his plans in a speech before the end of the year, amid pressure from Conservative backbenchers to act.
Freedom of movementFreedom of movement
Tuesday's ruling relates to a case involving a Romanian woman and her son living in Germany who had been denied access to a non-contributory subsistence allowance from the German social security system.Tuesday's ruling relates to a case involving a Romanian woman and her son living in Germany who had been denied access to a non-contributory subsistence allowance from the German social security system.
The court decided the German authorities were right to refuse her request, and there was no discrimination involved in denying her access to a non-contributory benefit which is available to German citizens. Analysis by Europe correspondent Chris Morris
This isn't a blanket ban on EU migrants claiming benefits - nothing like it.
The woman involved in this case, Elisabeta Dano, already receives child benefit in Germany.
But the European Court agreed that she could be denied access to a subsistence allowance available to jobseekers because she isn't actively seeking work.
The Court also said Ms Dano and her son could not claim a right of residence in Germany because they do not have sufficient resources to support themselves.
In response, the European Commission said it has consistently stressed that freedom of movement is about the right of circulation, not about an unrestricted right to claim benefits - and the European Court has confirmed this.
But ironically this ruling could make it more difficult for David Cameron to renegotiate Britain's ability to exclude some EU migrants from parts of the benefit system.
Other EU leaders could turn round and say that the Court has now made it clear that the UK (and others) can already do that under existing rules.
It said the defendant did not have sufficient financial resources to claim residency in Germany after the initial three months and therefore could not claim that the rules excluding her from certain benefits was discriminatory.It said the defendant did not have sufficient financial resources to claim residency in Germany after the initial three months and therefore could not claim that the rules excluding her from certain benefits was discriminatory.
More broadly, it said the right of EU citizens to live and work in other member states - the principle of freedom of movement - did not stop states passing legislation of their own excluding migrants from some non-contributory benefits available to their own citizens. More broadly, it said the right of EU citizens to live and work in other member states - the principle of freedom of movement - did not stop states passing legislation of their own excluding migrants from some non-contributory benefits open to their citizens.
'Common sense' 'UK competence'
National Parliaments have the "competence to define the extent of the social cover" offered in the way of certain non-contributory benefits, it stated. National Parliaments have the "competence to define the extent of the social cover" offered in the form of certain non-contributory benefits, it stated.
"The directive thus seeks to prevent economically inactive European Union citizens from using the host member state's welfare system to fund their means of subsistence." the European Court of Justice said in a statement."The directive thus seeks to prevent economically inactive European Union citizens from using the host member state's welfare system to fund their means of subsistence." the European Court of Justice said in a statement.
"A member state must therefore have the possibility of refusing to grant social benefits to economically inactive European Union citizens who exercise their right to freedom of movement solely in order to obtain another member state's social assistance.""A member state must therefore have the possibility of refusing to grant social benefits to economically inactive European Union citizens who exercise their right to freedom of movement solely in order to obtain another member state's social assistance."
The ruling only applies to non-contributory benefits, benefits where the claimant does not make a contribution through the tax system.The ruling only applies to non-contributory benefits, benefits where the claimant does not make a contribution through the tax system.
'Landmark' 'Positive'
Conservative MEPs welcomed what they said was a "landmark" ruling. A No 10 spokesman said it would look at the ruling closely, suggesting it backed the prime minister's view that freedom of movement could not remain an unqualified right.
"The European Court of Justice has ruled in favour of common sense," Anthea McIntyre, the party's employment spokeswoman in Brussels said. Aides to the Work and Pensions Secretary Iain Duncan Smith said the ruling was "positive" while Conservative MEPs said it was a victory for "common sense".
"The court has made it clear that the original purpose of free movement is to allow free movement of labour and not of benefit tourists. If people cannot support themselves or make a meaningful contribution to the economy then they can have their benefits curbed, even if they are non-contributory benefits."
And Timothy Kirkhope, the party's home affairs spokesman, said the UK government should be "heartened" by the ruling.And Timothy Kirkhope, the party's home affairs spokesman, said the UK government should be "heartened" by the ruling.
"It will have wide-ranging implications for how the UK can tighten its welfare system to ensure only migrants that make a contribution can receive something back." "It will have wide-ranging implications for how the UK can tighten its welfare system to ensure only migrants that make a contribution can receive something back," Timothy Kirkhope, the party's home affairs spokesman in Brussels, said.
Labour also backed the judgement, saying the welfare state should only be available to those who are prepared to contribute.
Shadow work and pensions secretary Rachel Reeves urged ministers to extend the three month waiting time for benefit claims and stop migrants from claiming child benefit for dependents living abroad.
The European Commission has said it supports action by member states to tackle abuse of the benefits system by migrants but that it will not countenance restrictions on the principle of freedom of movement and labour across Europe.The European Commission has said it supports action by member states to tackle abuse of the benefits system by migrants but that it will not countenance restrictions on the principle of freedom of movement and labour across Europe.