Malta's golden passport scheme, allowing citizenship through financial investments, has been declared illegal under EU law by the Court of Justice, risking significant penalties for the country if it fails to comply with the ruling.
Malta's Golden Passport Scheme Violates EU Law, Court Declares
Malta's Golden Passport Scheme Violates EU Law, Court Declares
The EU's top court rules Malta's controversial citizenship program is contrary to European law, prompting potential repercussions for the nation.
The European Union's highest court recently ruled that Malta's golden passport scheme, which permits individuals to acquire citizenship through substantial financial contributions, is in violation of European law. This scheme allows foreign nationals to obtain a Maltese passport, granting them the right to reside and work across any EU nation, in exchange for a minimum investment of €600,000 (approximately £509,619), coupled with real estate procurement or rental obligations and a charitable donation of €10,000.
The court emphasized that this approach treats nationality as a mere commercial commodity. The EU Commission initially brought Malta to court in 2022 in light of these policies, which have raised concerns regarding the potential commodification of citizenship.
Responses from Maltese officials have been mixed, with former Prime Minister Joseph Muscat characterizing the ruling as politically motivated, suggesting the possibility of modifying the current scheme to align it more closely with EU standards.
The Court of Justice clarified that citizenship should not be attained through commercial transactions and cited Malta's practices as undermining mutual trust among EU member states. Despite Malta's insistence that their interpretation of EU treaties is valid, they are now facing the prospect of hefty fines should they choose not to adapt their scheme to comply with the new ruling.
In response to geopolitical concerns, Malta had previously suspended the scheme for Russian and Belarusian applicants following the escalation of tension from Russia's invasion of Ukraine. The ruling contradicted a prior judgment from the court’s Advocate General, who expressed that the commission had not sufficiently demonstrated that EU law mandates a genuine connection between applicants and the country for the grant of citizenship.
The European Commission has previously called for an end to such investor citizenship schemes, citing significant risks associated with security, money laundering, tax evasion, and corruption. As the fallout from this ruling evolves, Malta's future handling of its citizenship policies remains uncertain.
The court emphasized that this approach treats nationality as a mere commercial commodity. The EU Commission initially brought Malta to court in 2022 in light of these policies, which have raised concerns regarding the potential commodification of citizenship.
Responses from Maltese officials have been mixed, with former Prime Minister Joseph Muscat characterizing the ruling as politically motivated, suggesting the possibility of modifying the current scheme to align it more closely with EU standards.
The Court of Justice clarified that citizenship should not be attained through commercial transactions and cited Malta's practices as undermining mutual trust among EU member states. Despite Malta's insistence that their interpretation of EU treaties is valid, they are now facing the prospect of hefty fines should they choose not to adapt their scheme to comply with the new ruling.
In response to geopolitical concerns, Malta had previously suspended the scheme for Russian and Belarusian applicants following the escalation of tension from Russia's invasion of Ukraine. The ruling contradicted a prior judgment from the court’s Advocate General, who expressed that the commission had not sufficiently demonstrated that EU law mandates a genuine connection between applicants and the country for the grant of citizenship.
The European Commission has previously called for an end to such investor citizenship schemes, citing significant risks associated with security, money laundering, tax evasion, and corruption. As the fallout from this ruling evolves, Malta's future handling of its citizenship policies remains uncertain.
