For the European Union’s highest court, this past December was a big month. It ruled that Malta’s golden passport scheme is illegal under European law, dealing a devastating blow to Malta’s citizenship-by-investment program. This decision has come under fire from former Prime Minister Joseph Muscat, who called the ruling “political.” Malta’s government has so far not released a statement in reaction to the decision.
Malta’s golden passport scheme gives the highest bidders a passport. Malta’s scheme let people buy citizenship by making significant investments in the country. The EU Court of Justice declared that such arrangements jeopardize the mutual trust among member states and “amount to rendering the acquisition of nationality a mere commercial transaction.” The court emphasized that “the acquisition of Union citizenship cannot result from a commercial transaction,” underscoring its stance against the commodification of citizenship.
This judgement flies in the face of an earlier opinion issued to the court’s Advocate General, Anthony Collins. He supported Malta’s understanding of EU treaties with regard to its scheme. In defense of its program, Malta has repeatedly claimed that it was just following the EU laws as they should be interpreted.
In light of geopolitical events, Malta took measures in 2022 to suspend its golden passport scheme for Russian and Belarusian nationals. This suspension came quickly after the Russian invasion of Ukraine. It was an important part of a larger European push to go after people tied to the Kremlin.
The recent ruling marks a major test for Malta. It now needs to steer a path between its citizenship policies and acting in compliance with EU law. The government’s lack of communication after the court’s ruling has created even more uncertainty on what lies ahead for the golden passport scheme.
“The acquisition of Union citizenship cannot result from a commercial transaction.” – EU’s Court of Justice
The ruling has far-reaching consequences for other EU member states that operate similar citizenship-by-investment schemes. More importantly, it creates a strong precedent for the legality of these programs. As the debate continues, advocates around the globe will be watching closely as Malta determines its next steps following this landmark ruling.