Malta's controversial golden passport scheme, which allows individuals to obtain citizenship through financial contributions, has been deemed illegal by the European Court of Justice. The ruling emphasizes that acquiring citizenship cannot be seen as a commercial transaction and warns Malta of the consequences of non-compliance.
Malta's Golden Passport Program Declared Illegal by EU Court
Malta's Golden Passport Program Declared Illegal by EU Court
The EU's top court rules Malta's citizenship-by-investment scheme breaches European law, raising concerns over commercializing nationality.
In a landmark decision, the European Court of Justice has declared Malta's golden passport scheme illegal, stating it contravenes European Union law. The controversial program allows individuals to gain citizenship in return for substantial financial investments, including a minimum payment of €600,000, property purchases or rentals, and a charity donation of €10,000.
The lawsuit originated from the European Commission's 2022 challenge against Malta, arguing that the scheme undermines the integrity of EU citizenship by treating nationality as a commercial transaction. With the court ruling now issued, Malta faces potential fines if it fails to comply.
Former Prime Minister Joseph Muscat has described the ruling as "political," expressing confidence that the scheme could be modified to meet legal standards. Malta has historically defended its interpretation of EU treaties, but the court's decision stress the importance of maintaining mutual trust among member states.
Concerns have been raised that such investor citizenship programs pose risks including security threats, money laundering, and tax evasion. The EU has long cautioned against these practices, and this ruling further strengthens the call for member states to reevaluate their citizenship policies.
