Dano v Jobcentre Leipzig
Right to reside and benefit entitlement - equal treatment- 'economically inactive' persons without sufficient resources
Summary
The claimant was a Romanian national living in Germany with her son since 2010. She was entitled to German child benefit and an advance of child support maintenance. She had not worked in Germany and neither was there any evidence that she was seeking work. She was without sufficient resources of her own. She was refused a German basic subsistence benefit on the grounds that she did not have the right to reside.
The claimant's appeal involved the argument that this refusal was unlawful discrimination against her on grounds of nationality, given that she was a European citizen and that European law (in particular Article 18 of the Treaty on the Functioning of the European Union ('TFEU') and Article 24 of Directive 2004/38/EC - ('the Directive') required equal treatment for European nationals with nationals of the host member state, including regarding the granting of social assistance. Rejecting that argument, the Court held that the equal treatment provision at Article 24(1) 'must be interpreted as not precluding legislation of a Member State under which nationals of other Member States are excluded from entitlement to certain "special non-contributory cash benefits"... in so far as those nationals of other Member States do not have a right of residence under Directive 2004/38/EC in the host 'Member State'.'
Although all European citizens may rely on the equal treatment provisions, the primary rule in the TFEU prohibited discrimination on grounds of nationality that was subject to 'conditions and limits' laid down in the European treaties and in the law made to implement them. Article 24 of 2004/38/EC was such a provision, and capable of providing limitations. Article 24(2) did so regarding social assistance for those with an initial (three month) right to reside merely on the basis of being a Union citizen. But here the claimant had been living in Germany for more than three months, so instead the application of Article 24(1) was at issue. As that referred to the situation where a Union citizen was residing 'on the basis of this Directive', the court held that a Union citizen could only rely on the equal treatment provision for a longer period 'only if his residence... complies with the conditions of Directive 2004/38'. Those conditions (regarding residence for longer than three months) were set out in Article 7 of the Directive, with the possibility of a permanent right of residence after five years under Article 16. In the present case, the claimant was 'economically inactive' (ie, she was not a worker or self-employed or seeking work) and on the facts the court considered her only possible right to reside would be under Article 7(1)(b), as a person with 'sufficient resources ... not to become a burden on the social assistance of the host Member state... '. Again on the facts, she was not such a person. She, therefore, could not rely on the equal treatment rule at Article 24.