Malta's "Golden Passport" Scheme Deemed Illegal by EU Court

A prominent court has determined that Malta's "golden passport" program violates European Union law. The European Court of Justice found the initiative, which allowed wealthy individuals to purchase citizenship, to be illegal. The court stated that a member state cannot grant nationality, and consequently European citizenship, in exchange for predetermined payments or investments, as this effectively transforms the acquisition of nationality into a commercial transaction.

The program offered passports to those who resided in Malta for a year and invested €750,000. This passport granted them the right to live, work, and vote anywhere within the EU. The European Commission had previously challenged Malta's program, arguing that it undermined the core principles of EU citizenship and eroded trust among member states.

A spokesperson for the Commission emphasized that European citizenship is not for sale and expects Malta to adhere to the court's decision. The former Maltese Prime Minister, who initiated the scheme in 2014, criticized the ruling as politically motivated. Brussels had also pressured Cyprus and Bulgaria to end their similar programs, which they did, while Malta only tightened its background checks. The European Commission raised concerns about the program's potential to facilitate corruption, money laundering, and tax evasion.

Malta has indicated its intention to comply with the court's ruling. The government stated that it respects the court's decisions and is carefully analyzing the legal implications to amend its citizenship programs to align with the court's principles.