In a landmark ruling, Malta faces hefty fines and pressure to amend its controversial scheme that allows foreign nationals to gain citizenship through financial investment.
Malta's Golden Passport Scheme Ruled Illegal by EU Court
Malta's Golden Passport Scheme Ruled Illegal by EU Court
The EU's top court declares Malta's citizenship-by-investment program violates European law, sparking potential legal and financial consequences for the nation.
The EU’s Court of Justice has delivered a ruling against Malta's "golden passport" scheme, which allows foreign nationals to acquire citizenship through significant financial investment in the country. The scheme requires individuals to invest at least €600,000 in the Maltese economy, in addition to purchasing or leasing property and making a charitable donation of €10,000. The court stated that such arrangements "amount to rendering the acquisition of nationality a mere commercial transaction," violating EU law.
The ruling follows an EU commission lawsuit against Malta initiated in 2022, urging adherence to European regulations governing citizenship. While former Prime Minister Joseph Muscat described the judgment as "political," expressing belief that amendments could keep the scheme alive, the current Maltese government has yet to respond officially.
Failing to comply with the court's verdict could result in substantial fines for the island nation. Malta maintains that its interpretation of EU treaties has been correct, notwithstanding the court's declaration that "the acquisition of Union citizenship cannot result from a commercial transaction."
In 2022, Malta halted the program for individuals from Russia and Belarus due to geopolitical tensions, hinting at existing concerns surrounding investor citizenship models. Advocates of the ruling emphasized concerns over security risks, money laundering, and corruption inherent to such schemes, suggesting that they deteriorate the trust between EU member states.
The EU has issued calls for member nations to abandon similar programs, highlighting the need for a consolidated approach to citizenship regulations within the union. As discussions continue, Malta's future strategy regarding the golden passport initiative remains uncertain amidst legal and political pressures from the EU.
The ruling follows an EU commission lawsuit against Malta initiated in 2022, urging adherence to European regulations governing citizenship. While former Prime Minister Joseph Muscat described the judgment as "political," expressing belief that amendments could keep the scheme alive, the current Maltese government has yet to respond officially.
Failing to comply with the court's verdict could result in substantial fines for the island nation. Malta maintains that its interpretation of EU treaties has been correct, notwithstanding the court's declaration that "the acquisition of Union citizenship cannot result from a commercial transaction."
In 2022, Malta halted the program for individuals from Russia and Belarus due to geopolitical tensions, hinting at existing concerns surrounding investor citizenship models. Advocates of the ruling emphasized concerns over security risks, money laundering, and corruption inherent to such schemes, suggesting that they deteriorate the trust between EU member states.
The EU has issued calls for member nations to abandon similar programs, highlighting the need for a consolidated approach to citizenship regulations within the union. As discussions continue, Malta's future strategy regarding the golden passport initiative remains uncertain amidst legal and political pressures from the EU.
