Malta's 'Golden Passport' program, a scheme offering citizenship to wealthy individuals, has been ruled unlawful by the European Union's highest court.
Revamped Take:
Hey there! Let's chat about Malta's controversial citizenship-by-investment scheme, shall we? This program allows foreigners to claim a Maltese passport, granting them rights to live and work across the EU, but it doesn't come cheap – they've got to cough up a minimum of €600,000 and that could go toward property investment or rental, plus a charity contribution.
Fun fact: Since 2015, this scheme has raked in over €1.4 billion for Malta, going straight into a national savings and investment fund for future generations. But brace yourself, because it's just been slammed by the European Union's top court! They've decided this scheme breaks EU law, arguing it reduces citizenship to nothing more than a commercial transaction. Guess who brought Malta to court? Yep, the European Commission in 2022.
Malta claims it respects this ruling and is meticulously evaluating the legal implications to bring its citizenship-by-investment program in line with the court's decision, while insisting that citizenship matters remain a national responsibility.
The European Court of Justice (ECJ) ruled that this scheme violates EU law by treating citizenship as a "mere commercial transaction" and jeopardizing the idea of Union citizenship[1][3][4]. However, there's been no mention of fines for noncompliance – just legal costs related to the case[1][4]. Malta has promised to align with the judgment and review its citizenship regulations[5].
It's important to note that EU countries can set their own nationality rules, but this scheme has been criticized for undermining mutual trust among member states[1][3][4]. Malta faces potential fines if it fails to comply with the ruling.
This ruling goes against an earlier opinion by Advocate General Anthony Collins, who argued that EU law does not need a "genuine link" and that citizenship remains a national matter. Malta wasn't too happy about the court's decision, stating that it had simply disregarded the advocate general's advice. Other EU states also run similar schemes, and Malta temporarily halted applications from Russians and Belarusians in 2022 as EU concerns grew over security, corruption, and financial crime risks. That's all the tea for now!
Insight Enrichment:- The ECJ ruled that the Maltese scheme reduces citizenship to a "mere commercial transaction," contradicting an earlier opinion by Advocate General Anthony Collins, who argued that EU law does not require a "genuine link"[3][4].- The ruling mandated Malta to pay legal costs associated with the case and to cease the program[1][4].- There has been no mention of fines for non-compliance, only legal costs and the requirement to amend the citizenship regulations[1][3][4].- Malta has stated it will comply with the ruling and review its citizenship regulations[5].- The focus of the ruling was on the legal invalidation of the scheme rather than financial penalties beyond litigation expenses[1][3][4].
- The European Court of Justice (ECJ) ruled that Malta's citizenship-by-investment scheme, which allows foreigners to obtain a Maltese passport for €600,000, violates EU law by treating citizenship as a "mere commercial transaction."
- Malta faces potential fines if it fails to comply with the ruling, but as of now, only legal costs related to the case have been mentioned.
- In 2022, the European Commission brought Malta to court over the controversial scheme, and Malta has promised to align with the judgment and review its citizenship regulations.
- Despite this, Malta has temporarily halted applications from Russians and Belarusians due to growing EU concerns over security, corruption, and financial crime risks.
