Malta faces potential fines as its controversial scheme that allows citizenship through financial investments is deemed illegal by the EU's top court, challenging the integrity and trust among member states.
Malta's Golden Passport Scheme Invalidated by EU Court
Malta's Golden Passport Scheme Invalidated by EU Court
EU Court rules Malta's citizenship-for-investment scheme breaches union laws.
In a landmark decision, the European Union's Court of Justice has ruled that Malta’s "golden passport" scheme, which permits individuals to acquire citizenship through significant financial investments, contravenes EU law. The scheme, which requires a payment of at least €600,000, along with property purchases or rentals, and a charitable donation of €10,000, has been criticized for commodifying citizenship.
The legal proceedings initiated by the EU Commission in 2022 have resulted in this ruling, which asserts that allowing nationality acquisition as a commercial transaction undermines the fundamental principles of EU citizenship. Malta's government has yet to address the judgment officially; however, former Prime Minister Joseph Muscat suggested that the scheme could continue with modifications to align it with the court's decision.
The court's statement emphasized that "the acquisition of Union citizenship cannot result from a commercial transaction," thus indicating the need for a legitimate connection between individuals seeking citizenship and the country in question. Furthermore, Malta has faced accusations over the years regarding this scheme, especially after the suspension of citizenship applications for Russian and Belarusian nationals following geopolitical tensions instigated by the Russian invasion.
Despite previous defenses from Malta, which claimed that its interpretation of EU treaties was sound, both the court and the European Commission have remained firm against investor citizenship schemes due to associated risks, including security threats and potential financial misconduct. The judgment puts Malta at risk of considerable penalties should it fail to comply, drawing attention to the broader controversies of citizenship-by-investment programs within the EU.
