European Commission to take Malta to court over golden passports

The EU physique will file a authorized problem towards Malta for the scheme that permits rich foreigners to purchase citizenship.

European Union flags are pictured outdoors the European Fee constructing in Brussels, Belgium [File: Carl Court/Getty Images]

The European Fee has stated it would file a authorized problem towards Malta for its so-called golden passport programme that permits rich foreigners to purchase citizenship in change for an funding of about 1 million euros ($970,000).

Holding a Maltese passport permits them to dwell and work in any EU nation.

In current months, Malta suspended the programme for Russian and Belarusian nationals following the beginning of the warfare in Ukraine, however it continues to function the scheme for all different nationalities and “has not expressed any intention to finish it”, the Fee stated in a press release on Thursday.

Brussels believes the scheme is in breach of EU legislation as a result of citizenship is granted with none actual obligation for the beneficiaries to dwell within the nation.

“By providing citizenship in change for pre-determined funds or investments, and not using a real hyperlink with the Member State involved, Malta breaches EU legislation,” tweeted EU justice affairs commissioner Didier Reynders.

“European Union values are usually not on the market,” he added.

Malta’s response

Malta’s authorities responded with a press release refuting the scheme was in violation of EU legislation, and reiterated that its citizenship coverage was strictly a matter of nationwide competence.

Going to courtroom “provides Malta the chance to proceed rebutting the stated allegations and let the Court docket of Justice of the European Union (ECJ) settle the matter”, a authorities assertion stated.

The referral of the case to the EU Court docket of Justice comes after years of wrangling with Malta about tweaks to the scheme.

If Malta loses its case on the ECJ, it should adjust to the courtroom determination or face hefty fines.

An infringement process in regards to the programme was initiated by the European Fee in October 2020, however led to no tangible modifications, the Fee stated.

Stress from Brussels has led to the suspension or abolition of golden passport schemes in different EU nations, with Cyprus and Bulgaria being the newest to halt their programmes.

That leaves Malta alone within the EU, though many different nations function programmes to promote visas.

Malta has controversially raised 1.1 billion euros ($1.1 billion) since 2013 by providing passports in change for investments.