Austria sparked controversy earlier this week after they declared plans to cut benefits for children living abroad – a move that could break EU rules and enrage Brussels’ hierarchy.
There is mounting concern of a showdown between Austria and the EU, after the country’s new coalition Government included a far-right, eurosceptic party.
The latest policy move prompted Jean-Claude Junckrr’s deputy chief spokeswoman to issue a warning that the European Commission was closely monitoring the situation.
Mina Andreeva, spokesperson of European Commission, was quizzed about the policy announcement, after the bloc shot down similar proposals from Germany last year.
Asked whether the European Commission had since changed its mind, she grinned and said: “Well, you importantly said if! It’s not clear whether this proposal becomes policy.
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“We take note of the announcement, we will closely monitor and examine the laws compatibility with the EU once adopted.”
The European Commission criticised Germany last year for a similar plan to cut child benefits, which was later abandoned due to Europe-wide pressure.
Brussels will hope to exert the same control this time around, amid fears that Austria could form alliances with countries that have stood up to the EU, including Poland and Hungary.
Austria has vehemently denied that the move breaks any EU rules around discrimination.
Announcing the plan this week, the country’s Prime Minister Sebastian Kurz said the government would cut benefits for residents’ children who live in a country where the cost of living is lower.
He told the press: “It is an unfairness built into the system that, for two children who do not even live in Austria but in Romania, roughly 300 euros a month are transferred to Romania and that is almost the average income there.”
Mr Kurz said a legal paper commissioned by the government “clearly shows that it is legally possible to take these measures”, adding: “We have prepared this well.”
The Government said the law change will create over £2billion in savings this year.