Austria rejects EU criticism of cuts to benefits payments for children living abroad

Austria has rejected EU criticism of its decision to cut benefits payments for some children living abroad, saying the policy just recognizes that there are lower living costs in other countries. The government said it had written to the EU formally defending the policy, Reuters reports. Slovakia and other eastern European states have complained about the cuts, saying they discriminate against their nationals who work in Austria but keep their families back home, Reuters reported. The EU has sent Austria a “letter of formal notice” about the policy. The move could be a first step towards legal action against Vienna. Brussels said it was unfair for some people in Austria to pay the same taxes but receive lower benefits. Austria’s ruling started indexing the child benefit payments to living costs in January.