European court backs British benefit restrictions

European judges have rejected an appeal challenging Britain's right to deny some European Union migrants access to child benefit and child tax credits - a decision that could have wide-ranging implications for other EU member states.

What was the case about?

The challenge was brought by the European Commission, which argued Britain's decision to impose a right of residence test on those trying to access certain family benefits "amounted to direct discrimination against citizens of other EU member states", says The Guardian.

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Why did the judges rule against the EC?

The European Court of Justice [ECJ] agreed "that it was lawful for the UK to withhold benefits to migrants if they did not have the right to reside in the UK", says The Independent. Such "unequal treatment" was justified on the basis of "protecting a member state's finances".

Marley Morris, from the Institute for Public Policy Research think-tank, said the ruling was a sign that the court was more prepared to give national governments freedom to interpret European treaties.

"This is another sign that [the ECJ] is becoming more sympathetic to the UK's interpretation of free movement rules," he said.

What impact will this have on the EU referendum?

The decision, which will be greeted with "profound relief" by David Cameron and the Remain camp, is important to the EU referendum debate "because it strengthens the argument that future reforms to free movement and welfare rules will not be rolled back by the EU courts", says the Independent.

Pro-EU campaigners "may now be breathing a large sigh of relief", says BBC political correspondent Theo Leggett, but for the Leave group, "the judgment also reminds voters that aspects of the UK's welfare system are subject to EU law", says the Independent.

Vote Leave said it was "absurd that the UK had to run every nut and bolt of domestic policy" past a court in Luxembourg.