The European Court of Justice on Tuesday ordered Malta to close its \u201cgolden passport\u201d program , ruling that citizenship in EU countries cannot be sold.<\/p>\n
Programs that allow wealthy people to buy citizenship were once widespread in Europe, but they\u2019ve been rolled back in recent years amid concerns that they facilitate transnational crime and sanctions evasion.<\/p>\n
The court said Malta\u2019s scheme broke EU law even after the Mediterranean island country made reforms.<\/p>\n
The program \u201camounts to the commercialization of the grant of the nationality of a member state and by extension that of union citizenship,\u201d a judge at the court in Luxembourg said. \u201cThe acquisition of Union citizenship cannot result from a commercial transaction.\u201d<\/p>\n
Malta \u201cfailed to fulfill its obligations\u201d to the European Union, the judge said.<\/p>\n
\u201cSuch a practice does not make it possible to establish the necessary bond of solidarity and good faith between a Member State and its citizens, or to ensure mutual trust between the Member States and thus constitutes a breach of the principle of sincere cooperation,\u201d the court wrote.<\/p>\n
The government of Malta said in a statement that it would respect the court\u2019s decision while examining the ruling\u2019s \u201clegal implications.\u201d It defended the scheme, saying it has brought 1.4 billion euros ($1.6 billion) to the island nation since 2015.<\/p>\n
The ruling of the EU\u2019s top court was welcomed by transparency advocates but criticized by Maltese politicians.<\/p>\n
Joseph Muscat, the former Prime Minister who ushered in the program, posted on Facebook that the ruling was \u201cpolitically motivated\u201d and that Malta\u2019s scheme should be reformed rather than scrapped.<\/p>\n
Before the ruling, Prime Minister Robert Abela told local newspaper the Times of Malta that the scheme was safe and beneficial.<\/p>\n
But the scheme did not benefit Malta, said Maltese journalist Matthew Caruana Galizia who welcomed the ruling as \u201ca win for the people of Malta and for all EU residents who have been unfairly exposed to the whims of money launderers and corrupt criminals buying their way into the EU.\u201d<\/p>\n
Galizia, son of Daphne Caruana Galizia, a Maltese journalist focused on corruption who was killed by a bomb in 2017, called for the government of Malta to scrap the \u201cgolden passport\u201d program targeted in the ruling and to curtail its separate \u201cgolden visa\u201d program that grants Maltese residency to wealthy foreigners.<\/p>\n
Such programs were widely embraced across Europe and the United Kingdom, especially in the wake of the 2009 financial crisis.<\/p>\n
But in the following decade, most EU states scrapped their programs over their links to housing crises in Europe; fears of the programs\u2019 potential for white collar crime, corruption and money laundering; and security concerns following the 2018 Salisbury poisoning in the UK.<\/p>\n
The European Commission launched infringement procedures against Malta and Cyprus in 2020 about their golden passport programs. After Cyprus in 2021 and Bulgaria in 2022 ended their programs, Malta was one of the last holdouts.<\/p>\n
Russia\u2019s invasion of Ukraine shone an increasingly harsh spotlight on the policies, which some say allow Russians linked to the conflict to skirt sanctions.<\/p>\n
The European Commission warned that some Russian or Belarusian citizens who are among the 877 individuals targeted by asset freezes and travel bans imposed since 2014, or who support the Russian invasion of its neighbor, might have acquired EU citizenship or had access to the Schengen area via these schemes.<\/p>\n
A 2023 report by corruption watchdog Transparency International found Russians under sanctions by Ukraine or linked otherwise to the war effort had opened companies in France using recently acquired passports from Malta.<\/p>\n
\u201cCountless cases have shown how these schemes have granted safe haven in the EU to corrupt actors from around the world and other suspicious individuals,\u201d said Transparency\u2019s chief Ma\u00edra Martini. Speaking at a regular news conference in Brussels, European Commission spokesperson Markus Lammert said the ruling extends beyond Malta to halt any of the EU\u2019s 27 member states from running such schemes.<\/p>\n
\u201cMalta has breached EU law \u2014 it\u2019s now for Malta to implement the court\u2019s judgment,\u201d he said.<\/p>\n
He did not say whether such passports already issued should be revoked, saying only that it would study the verdict to understand its implications.<\/p>\n
The court ruling also comes shortly after US President Donald Trump said he plans to start a \u201cgold card\u201d visa program that includes a potential pathway to US citizenship for $5 million.<\/p>\n
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