 "'Commercialisation of citizenship': Malta’s ‘golden passport’ is illegal, rules EU top court")
Europe’s highest court on Tuesday struck down Malta’s controversial “golden passport” programme, ruling that it breached EU law by allowing individuals to effectively buy citizenship through investment.
According to a Politico report, the European Commission had launched legal proceedings against Malta in 2022 over the scheme giving foreigners a Maltese — and therefore European Union — passport in exchange for a one-off investment of at least €600,000.
In its ruling, the Court of Justice of the European Union called the programme a “commercialisation” of EU citizenship that undermined the principles of “good faith” and “mutual trust” among member states, added the report.
Though Malta suspended the scheme for Russian and Belarusian nationals after the Ukraine invasion, earlier beneficiaries reportedly included sanctioned Russian oligarchs, according to media reports.
Malta’s government said it would comply with Tuesday’s ruling and update its laws accordingly, reported Politico, citing local media.
“As always, the government of Malta respects the decisions of the courts,” Politico quoted the government as saying in a statement.
“At this moment the legal implications of this judgment are being studied in detail, so that the regulatory framework on citizenship can then be brought in line with the principles outlined in the judgment,” the statement added.
The Maltese government added that past recipients of the scheme would not be affected and said the scheme had raised hundreds of millions of euros.
A spokesperson for the Commission welcomed the ruling.
“European citizenship is not for sale,” Politico quoted the spokesperson as saying on Tuesday.
“We expect Malta to comply with this decision and apply it accordingly,” the spokesperson added.
Impact Shorts
More ShortsThe spokesperson urged the abolition of all similar citizenship-by-investment schemes across the EU.
While Cyprus and Bulgaria have already discontinued their golden passport programmes —Cyprus even revoking several, mostly issued to Russian nationals — the court’s ruling was welcomed by NGOs as a major step toward closing loopholes in EU citizenship policies.
“Today’s judgment confirms that member states cannot commodify EU citizenship and operate reckless golden passport programmes,” Politico quoted Transparency International CEO Maíra Martini as saying in a statement.
Former Maltese Prime Minister Joseph Muscat, who launched the golden passport scheme in 2014, dismissed Tuesday’s court ruling as politically driven.
In a Facebook post, he accused European Parliament President Roberta Metsola of “working against our country.”
Muscat is currently facing prosecution in Malta over alleged corruption.
With inputs from agencies
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