The European Commission has referred Malta to the Court of Justice of the European Union for selling passport to wealthy passports though what is known as the ‘golden passport’ scheme.
Malta is the only country to retain the investor citizenship scheme after Cyprus and Bulgaria put a stop to this.
The commission considers granting EU citizenship in return for pre-determined payments or investments with no link to the member state concerned incompatible with sincere cooperation. This, the commission argued, goes against the principle enshrined in the Treaty on European Union as well as the concept of Union citizenship.
This was disputed by Malta, insisting that its interpretation of EU treaties was in fact correct. Malta had previously suspended the sale of passports for Russian and Belarusian nationals following the invasion of Ukraine by the former country.
The commission observed however that Malta continues to operate the scheme for all other nationalities and has not expressed intention to end it. This despite a letter of formal notice to Malta by the Commission sent on October 20th 2020, urging to end the scheme. A follow-up letter was sent on June 9th 2021.
This was followed by a reasoned opinion to Malta, to which the island replied by stating that while it would maintain dialogue with the commission, the grant of citizenship falls within the national competence of a member state and should remain as such.
This response was deemed unsatisfactory by the Commission and thus referred Malta to the Court of Justice of the EU.
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