Discrimination due to nationality or ethnic origin DISCRIMINATION WITH REGARD TO STATE FAMILY BENEFITS The AOB reported last year about discrimination in Carinthia with regard to payment of the one-time birth allowance, which violates EU law. This one-time allowance for parents of newborn children was restricted to families with Austrian citizenship that had lived in Carinthia for at least two years prior to the birth of the child. After the AOB had been involved in the matter, the citizenship clause was removed and the Carinthian one-time birth allowance expanded to families of EU citizens as well. Families still must have lived in Carinthia for at least two years prior to the birth of the child in order to claim this allowance. In 2001, around nine percent of persons living in Austria were citizens of a country other than Austria. Of the 4 million employed persons in Austria in 2001, around 411,000 were citizens of a country other than Austria. The equal treatment of these persons, with regard to family benefits, that is required under EU law is a key element of the freedom of movement within the European Union. The European Court of Justice has ruled that an EU member state is discriminating against citizens of other member states if it makes payment of a birth or maternity allowance dependent on whether the recipient previously lived in its territory. This ruling is also applicable to state family benefits such as the Carinthian birth allowance. Therefore the AOB determined in April 2008 that the minimum residence clause represents indirect discrimination of foreign families from the EU/EEA region. It is much more difficult for foreign families to fulfil the period of residence than for Austrian families. The AOB recommended that the guideline be promptly amended to comply with Community law. Carinthian birth Because EU law takes precedence, the Authorities are already obligated to take periods of residence in other EU/EEA member states into consideration equally, regardless of the wording of the guideline. At the same time, it is necessary to prevent so-called reverse discrimination. This would be discrimination of families who are Austrian citizens, which is prohibited under the Constitution. Therefore, the AOB recommended to completely waiving the requirement of a Residence in EU allowance violates EU law member state must be considered 45