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The European Union’s highest court has declared that Malta’s “golden passport” program, which allows individuals to secure citizenship through significant financial investments, is incompatible with European law.
The EU Commission initiated legal proceedings against Malta in 2022 regarding this scheme, which enables foreigners to obtain a Maltese passport—granting them the right to reside and work across EU member states—by contributing a minimum of €600,000, investing in property, and making a €10,000 donation to charity.
The Court of Justice of the European Union emphasized that this practice effectively turns the acquisition of nationality into a financial transaction.
Malta’s government has yet to make a statement regarding the court’s decision, though former Prime Minister Joseph Muscat referred to the ruling as “political” and expressed a belief that the program could continue with modifications.
The nation faces significant penalties if it fails to adhere to the court’s ruling.
According to the court, the pathway to EU citizenship cannot be based on a commercial agreement.
Malta has maintained that its interpretation of EU treaties is justifiable, as reported by Reuters.
Last year, Malta paused the scheme for applicants from Russia and Belarus in response to the geopolitical ramifications of Russia’s actions and the subsequent EU sanctions.
This ruling contrasts with a preliminary opinion from the court’s Advocate General, Anthony Collins, who stated last October that the commission had not substantiated the requirement for a “genuine link” between potential citizens and the country, asserting that individual nations should determine their national citizens and, by extension, their EU citizens.
While EU member states retain autonomy over how they grant citizenship, the court warned that Malta’s initiative undermines the trust that exists among member countries.
In the past, the EU has urged nations to discontinue such programs, highlighting the associated risks of security concerns, money laundering, tax evasion, and corruption.
Source
www.bbc.com