Amsterdam (Brussels Morning Newspaper) – The European Court of Justice ruled that Malta must terminate its golden passport scheme, which permits affluent foreigners to acquire citizenship, as this violates European Union law.
In 2022, the EU Commission took Malta to court regarding a scheme that allows foreigners to obtain a passport and, consequently, the right to reside and work in any EU nation in exchange for an investment of approximately 1 million euros.
What are the EU’s legal concerns with Malta’s scheme?
Brussels argues that the scheme violates EU law since citizenship is awarded without a genuine requirement for beneficiaries to reside in the country. That leaves Malta alone in the EU, although many other countries operate programs to sell visas.
The program for Russian and Belarusian nationals was suspended after the war in Ukraine began, while the scheme remained active for other nationalities. Brussels’ pressure has prompted other EU nations to suspend or eliminate golden passport schemes, with Cyprus and Bulgaria recently stopping their programs.
How does Malta defend its golden passport program?
Malta, however, contests this perspective, reiterating its belief that its interpretation of EU treaties is accurate.
According to a statement from the Malta Home Affairs Ministry, the government of Malta asserts that it is not violating the principle of sincere cooperation outlined in Article 4 (3) of the Treaty of the European Union.
The case referral to the EU Court of Justice follows years of negotiations with Malta regarding adjustments to the scheme. The EU Commission began an infringement procedure concerning the program in October 2020, but it resulted in no significant changes, according to the Commission.
What economic benefits has Malta claimed from the scheme?
From 2014 to 2020, Malta’s passport sales brought in over 800 million euros, a success praised by the Labour government for supporting workers’ salaries during the peak of the COVID-19 crisis.
How does the court view citizenship-for-investment practices?
The court stated that while member states have the authority to decide how they issue or revoke nationality, Malta’s approach undermined the mutual trust principle among member states that underpins the common area.
“A member state cannot grant its nationality – and indeed European citizenship – in exchange for predetermined payments or investments, as this essentially amounts to rendering the acquisition of nationality a mere commercial transaction”
The court said.
“Such a practice does not make it possible to establish the necessary bond of solidarity and good faith between a member state and its citizens, or to ensure mutual trust between the member states.”
