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- Courts in the EU have put an end to Malta’s golden passport program, which essentially allowed foreigners to purchase citizenship.
- Critics of the program say it opened the EU to potential corruption and money laundering.
- The court decision could have implications for other golden passport programs within the bloc.
Things just got a little harder for those hoping to snag a coveted European Union passport.
On Tuesday, the Court of Justice of the European Union (CJEU) ruled that Malta must end its golden passport program, which allowed foreigners to purchase citizenship in exchange for an investment of more than €600,000, according to EuroNews. And this decision could have a ripple effect on other countries in the EU with similar programs.
“Today’s judgment confirms that member states cannot commodify EU citizenship and operate reckless golden passport programs,” Maíra Martini, the chief executive officer of Transparency International, said in a statement. “Countless cases have shown how these schemes have granted safe haven to corrupt actors from around the world and other suspicious individuals in the EU. The ruling stops not only Malta from selling EU citizenship, but will also prevent other member states from doing the same.”
The Commission had argued that Malta’s golden passport scheme allowed people to obtain Maltese citizenship without having to show a genuine connection to the country, which then allowed them to live and work anywhere across the EU.
“The Commission asserts that the scheme, which granted naturalization in return for predetermined payments or investments to persons without a genuine link with Malta, constitutes an infringement of the rules relating to Union citizenship and of the principle of sincere cooperation,” the Commission wrote. “It therefore brought an action against that Member State before the Court of Justice.”
The Maltese government responded to the ruling, stating that past recipients of the passport program would not be affected and that it plans to comply with the new court ruling moving forward, according to Forbes.
“As always, the government of Malta respects the decisions of the courts,” a statement by the government reads. “At this moment, the legal implications of this judgment are being studied in detail, so that the regulatory framework on citizenship can then be brought in line with the principles outlined in the judgment.”
But the government’s statement also noted that it “takes pride in the wealth generated through this framework over recent years, which enabled the establishment of a national fund for investment and savings to address the needs of both present and future generations.”
This program differs slightly from golden visa programs like those in Portugal, which offered a pathway to citizenship through various investments, including purchasing a home, starting a business, or donating to arts and culture. However, as EuroNews pointed out, the Portuguese government has already scaled back its program, removing the real estate investment option as of 2023. EuroNews added that the Netherlands has also ended its golden visa program, while Spain has also promised to end its real estate program as well.
“This case was about more than national citizenship; it was about putting an end to a dangerous policy that put the EU’s four freedoms up for sale,” Nick Aiossa, the director of Transparency International EU, added. “As long as money can buy EU citizenship, the entire bloc is exposed to risks of corruption from money launderers and criminals—but no longer. The CJEU ruling puts an end to Malta’s controversial golden passport scheme and will prevent other member states from trading in EU citizenship going forward.”
