By PAUL O´DONOGHUE, Senior Correspondent
THE European Court of Justice has ruled that Malta’s controversial golden passport scheme is illegal, effectively ending the last EU cash-for-citizenship program.
In a ruling, the court found that Malta’s investor citizenship scheme violated EU law. It stated that the scheme, which allowed wealthy individuals to purchase citizenship in exchange for large financial contributions, amounted to the “commercialisation” of EU nationality.
The court added: [Ìt] cannot be considered that actual residence was regarded by Malta as constituting an essential criterion for the grant of the nationality”.
The scheme, introduced in 2013 and expanded in 2020, allowed people to gain Maltese citizenship by contributing up to €750,000 and spending at least one year in the country. Maltese citizenship granted them the right to live and work anywhere in the EU.
The European Commission has long opposed ´golden passport’ initiatives due to money laundering fears. A European Commission spokesperson welcomed the court decision and called on Malta to implement the judgment. In a statement, the Commission said: “European citizenship is not for sale.
“Investor citizenship schemes breach EU law and as such should be abolished by all member states.”
Malta was last EU golden passport scheme
The European Commission took legal action against the scheme years ago. It argued that it offered a backdoor route to EU citizenship, even if someone had no ties to the bloc.
Critics had long warned that the program posed risks like money laundering, corruption, and security threats.
In 2020, the European Commission launched legal proceedings against Malta and Cyprus for selling EU citizenship. Cyprus ended its program shortly after, but Malta’s government defended its right to grant nationality.
Malta was the last EU country to operate a golden passport scheme. Other EU countries operate ´golden visa´ initiatives, which grant residency rights instead of citizenship. These golden visa schemes have also been criticized due to money laundering concerns.
In response to the ruling, the Maltese government said it was reviewing the decision. The government also emphasized the scheme’s financial benefits, saying it has generated over €1.4 billion for the state since 2015.
Former Prime Minister Joseph Muscat, who introduced the scheme, said on Facebook that the ruling was politically motivated. Muscat resigned in 2020 amid a scandal linked to the investigation into the 2017 murder of journalist Daphne Caruana Galizia.
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