EU court strikes down Malta’s golden passport scheme | World News

The European Court of Justice (ECJ) has ruled that Malta’s controversial golden passport scheme breaches EU law, dealing a blow to the practice of selling citizenship in exchange for investment.
In a landmark judgment, the court said that offering EU nationality as a commercial transaction violates the foundational principles of European integration and solidarity. The ruling compels Malta to dismantle the scheme or face potential penalties.
Launched in 2013 and formalised in 2020, Malta’s programme allowed affluent foreigners to obtain citizenship making a minimum investment of EUR 600,000, donating EUR 10,000 to charity, and either buying or renting property. Applicants were also required to live in Malta for three years — a requirement reduced to one year for those contributing at least EUR 750,000.
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Successful applicants received a Maltese passport, granting them the right to live, work, and vote across the EU under the bloc’s freedom of movement laws.
The scheme has long drawn criticism from EU institutions, anti-corruption watchdogs, and civil society groups, who argued it posed risks of money laundering, tax evasion, and national security breaches. A 2021 investigation The Guardian found that several wealthy individuals obtained citizenship after spending mere weeks in Malta and maintaining only nominal ties to the country.
Addressing such concerns, the ECJ ruled: “A member state cannot grant its nationality — and indeed European citizenship — in exchange for predetermined payments or investments, as this essentially amounts to rendering the acquisition of nationality a mere commercial transaction.”
The court said Malta had “failed to fulfil its obligations” under EU treaties, adding that citizenship “is one of the principal concrete expressions of the solidarity which forms the very basis of the process of integration… an integral part of the identity of the European Union.”Story continues below this ad
The decision aligns with earlier EU pressure that led Cyprus and Bulgaria to dismantle similar schemes, citing systemic risks of corruption and abuse.
Malta’s government issued a cautious response, stating it is “studying the legal implications of the judgment in detail” and intends to align its citizenship framework with the court’s guidance. However, it also defended the scheme’s economic benefits, noting it had generated over EUR 1.4 billion since 2015 and approved more than 5,300 applications the end of 2023.
The ruling has drawn praise from EU lawmakers and transparency advocates. Daniel Freund, a Green MEP, welcomed the verdict, saying: “European passports are not for sale. Criminals, autocrats, and terrors should not be able to buy a ticket into the EU.”
The ECJ’s decision sets a significant precedent and may reshape citizenship policies across the bloc.
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