It is the end of years of controversy. Malta must stop granting his nationality to wealthy investors in exchange for payments, the highest court of the EU, seeing in Tuesday, seeing in These “golden passports” a violation of European law. The Maltese government immediately promised to modify its legislation ensuring “always respecting” the decisions of the courts.
“At this stage, legal implications are studied in detail, so that the regulatory framework for citizenship can then be aligned with the principles set out in this judgment,” the government said in a statement. Some wealthy people were ready to make a large financial effort to win the sesame allowing to circulate and settle freely in the 27 EU countries.
Malta had refused to comply with Brussels requests
The European Commission welcomed the binding and final judgment rendered by the EU Court of Justice (CJEU) which ends years of controversy. “European citizenship is not for sale,” said commission spokesman Markus Lammert, at a press conference.
Brussels opened an offense procedure against the small Mediterranean archipelago in October 2020 so that it ended this suspected practice of promoting corruption and money laundering. In September 2022, Malta refused to comply, the commission had seized the CJEU.
“By implementing the investment citizenship program, which is akin to marketing the granting of nationality (…), Malta has violated Union law,” said the Luxembourg -based court in a judgment that cannot be the subject of an appeal.
Financial sanctions if Valette does not make Fissa
Malta will have to comply “as soon as possible,” said the court. Otherwise, the Commission may claim financial sanctions. The archipelago estimates that revenues from this system since 2015 and has made it possible to improve the quality of life of residents thanks to investments, especially in housing or health.
But “a Member State cannot grant its nationality – and, in fact, European citizenship – in exchange for payments or predetermined investments, because this essentially amounts to the acquisition of nationality a simple commercial transaction”, explained the Court.
“The judgment confirms that the Member States cannot commodify European citizenship,” said Maira Martini, director general of the NGO Transparency International.
“These programs have offered a refuge to corrupt actors from around the world,” she said. Malta has always argued that the granting of nationality was its sole national competence.
Each state is free but “in compliance with union law”
The CJEU also recalled Tuesday that each Member State was “free to define the conditions by which it grants or withdraws its nationality”. But “this freedom must be exercised in compliance with Union law,” she said.
Malta had already suspended the “golden passports” regime for Russian and Belarusian nationals, after the outbreak of the war waged by Moscow in Ukraine since February 2022, but continued to implement it for nationals of other countries, despite the Brussels reprimands.
The European Commission had also launched an offense procedure against the “Golden passports” in Cyprusbut this country has agreed to end it from October 2021.
