Malta’s highly criticized “golden passport” program, which granted citizenship to wealthy foreigners in exchange for significant investments, has been ruled illegal by the Court of Justice of the European Union (CJEU). The court’s decision on Tuesday declared the scheme as a “commercial transaction” that undermines the integrity of EU citizenship, according to Bloomberg.
The CJEU emphasized that an EU member state cannot grant nationality, and by extension, European citizenship, in exchange for predetermined payments or investments. This practice, the court argued, reduced nationality acquisition to a mere business deal. The ruling effectively ends Malta’s investor citizenship program, which required a minimum donation of €600,000 (about Rs 5.74 crores), alongside property investments and optional charitable contributions. In exchange, individuals, including Russian oligarchs, Middle Eastern businessmen, and celebrities, received a Maltese passport, granting them the ability to live and work freely across the EU.
This ruling follows a legal challenge from the European Commission, which argued that the scheme violated EU law, particularly the principle of sincere cooperation. The Commission has long raised concerns that such cash-for-passport programs increase the risk of money laundering and criminal infiltration.
Malta is not alone in offering similar programs. Countries like Portugal, Ireland, Greece, and Hungary introduced “golden visa” and citizenship initiatives after the European debt crisis to attract foreign investments. However, these programs have faced strong opposition from EU authorities, who argue that selling residency or nationality erodes trust and creates opportunities for illicit activities.
Interestingly, the EU court’s decision comes as former U.S. President Donald Trump seeks to revive investor immigration in the U.S. The new “Trump Gold Card” program offers U.S. residency and potential citizenship in exchange for a $5 million investment. Over 1,000 such investor visas were reportedly sold in a single day in March.
The CJEU ruling overrules a non-binding opinion from an EU tribunal adviser who had argued that individual EU member states should have the authority to decide who becomes their nationals. The court, however, made it clear that such decisions cannot be based solely on financial contributions.
Recent Random Post:
