Maltese studying abroad may get stipend

Maltese undergraduates pursuing their studies at a university abroad may be entitled to receive the local stipend in the wake of a ruling by the European Court of Justice (ECJ).

The ECJ held in a recent case that under the freedom of movement principle, students are entitled to the same benefits they receive at home if they choose to go abroad.

The case was brought before the ECJ by a German couple who were denied tax credits by their own government after they chose to send their children to a private school in Scotland.

According to German law, parents may claim tax relief with respect to school fees at private school - but only on German soil.

After hearing submissions from the parents and the German government, the ECJ upheld the parents' claim on the grounds of freedom of movement and free movement of services.

The court said discrimination was not permitted.

Maltese parents may also benefit from this decision, since they do not currently receive any tax credits if they send their children abroad for schooling.

The ECJ stated: "It would be incompatible with the right to freedom of movement were a citizen to receive in the member state of which he is a national, treatment less favourable than he would enjoy if he had not availed himself of the opportunities offered by the EC Treaty in relation to freedom of movement."

Referring specifically to the EU right of free movement of persons, the court added that "these opportunities could not be fully effective if a national of a member state could be deterred from availing himself of them by obstacles placed in the way of his stay in the host member state by legislation of his state of origin penalising the mere fact that he has used them".

According to the provisions of the EU treaty, EU jurisprudence is to be followed in all member states, which means that the Maltese system of granting tax credits to Maltese parents who send their children to local private schools will now also have to be extended to those who send their children to schools in another member state.

When contacted, Nationalist MEP Simon Busuttil, who is also a lawyer specialising in EU law, said: "This is a very important judgment which may have considerable implications for us...

"The legal reasoning is the same: If a stipend is paid to a Maltese student following a university course in Malta, why shouldn't it be paid to students who exercised their right to free movement and study in another EU country?

"I have been approached by many Maltese students who are following a university course abroad.

"Many of them follow courses which are not available in Malta and are therefore compelled to go abroad.

"This judgment is probably just what they were waiting for and I am happy for them," Dr Busuttil said.