EU refers Malta to court over controversial ‘golden passport’ scheme

The European Fee has mentioned it can take Malta to courtroom over the member state’s “golden passport” scheme.

Overseas residents can purchase Maltese and EU citizenship in change for round €1 million of funding underneath the controversial programme.

The Fee mentioned in a assertion on Thursday that it determined to refer Malta to the EU’s Court docket of Justice.

Cyprus and Bulgaria had additionally issued “golden passports” however each have since ended, leaving Malta as the one EU nation with such a scheme.

Brussels has lengthy criticised the initiative, arguing it encourages corruption and cash laundering whereas complaining the buyers should not have any obligation to stay within the EU.

“EU values will not be on the market,” EU Justice Commissioner Didier Reynders wrote on Twitter.

“By providing citizenship in change for pre-determined funds or investments, with none actual hyperlink to the Member State involved, Malta is in breach of EU legislation,” he added.

The EU Fee first launched an infringement process towards Malta in October 2020 to cease the controversial observe.

The Maltese authorities has maintained that its system “doesn’t contravene” the EU treaties and reiterates that its citizenship insurance policies fall inside its nationwide competence.

The sale of passports generated greater than €800 million for Malta between 2014 and 2020, the federal government mentioned.

The “golden passport” scheme was nonetheless suspended for Russian and Belarusian residents in March following Moscow’s invasion of Ukraine.

“Though it is a constructive step, Malta continues to implement the scheme for nationals of all different nationalities and has not expressed any intention to finish it,” the Fee’s assertion learn.

“EU citizenship mechanically provides the fitting to free motion, entry to the EU inside market, and the fitting to vote and to be elected in European and native elections.”

“For these causes, the circumstances for acquiring and dropping nationality, regulated by the nationwide legislation of every Member State, are topic to due respect for EU legislation.”

Some EU international locations nonetheless function programmes to promote so-called “golden visas” that permit overseas buyers to acquire residency.