The Court of Justice of the European Union (CJEU) has played a pivotal role in interpreting and shaping socio-economic rights within the European Union. Through landmark decisions, such as Grzelczyk (2001), Dano (2014), and the recent 2024 ruling against Italy (Joined Cases C-112/22 and C-223/22), the CJEU has significantly influenced member states’ social welfare policies. These rulings address critical issues such as non-discrimination, the free movement of individuals, and the balance between national sovereignty and EU-wide equality principles.

This paper explores how CJEU decisions have impacted the accessibility and inclusivity of social welfare systems, with particular attention to the implications for socio-economic inequality. A special focus is given to the Long-term Residence Directive (2003/109/EC), which guarantees equal treatment for third-country nationals residing in the EU for five years or more. By analyzing key CJEU rulings, including the 2024 case invalidating Italy’s ten-year residency requirement for social benefits, the study highlights the directive's role in promoting social inclusion and reducing disparities.

The analysis aims to demonstrate that the CJEU decisions have strengthened the rights of both EU citizens and long-term residents while also revealing persistent tensions between national and EU-level priorities. By examining these developments within a broader socio-economic context, the study seeks to uncover the role of the CJEU in advancing social justice across the European Union.