HARMONISATION OF SOCIAL SECURITY

The aim of the coordination of social security laws of the Member States is only to coordinate not to harmonise social security systems of the Member States. The Member States are free to decide on the benefits and their financing and how to organise the administration. The European Union does not aim to provide one common harmonised social security system for all Member States. However, when the Member States are deciding on their social security systems, they are obliged to take into consideration, the fundamental freedoms protected by the EC Treaty, as well as general principles of Union law. This obligation may have indirectly harmonising effects. Sometimes coordination rules and principles are claimed to have such an impact on national social security systems which in a long run can have indirect harmonising effects.
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