This chapter examines the discretion conferred on the Member States of the European
Union (EU) in relation to the application of family policy that aims to improve the
demographic situation. Incentives for childbearing in pension schemes, as well as
the status of the family and the related subsidies, fall within the competence of
the Member States. The European Commission generally formulates recommendations in
that regard, which lack binding force.
Nonetheless, in these fields, the Court of Justice of the European Union (CJEU) gives
effect to primary and secondary EU law ensuring equal treatment of men and women.
State subsidies with objectives related to demography do not ‘prevail’ in the case
law of the CJEU. Examining the ratio decidendi of the existing case law, it is clear
that this is not limited to the acknowledgement of childbearing in pension schemes
but covers all state subsidies with similar objectives. In my opinion, this case law
is a major obstacle to achieving the related national goals; thus, it is necessary
to harmonise the EU law in force and the objectives related to demography.