European Court Orders Malta to End Golden Passport Program Over EU Law Violation

The European Court of Justice (ECJ) has made a significant ruling mandating Malta to terminate its controversial 'golden passport' program, which allowed wealthy foreign investors to acquire Maltese citizenship in exchange for financial investments, primarily in real estate and direct contributions to the government. The court deemed this practice a violation of EU law, stating that citizenship cannot be granted as a result of commercial transactions. The court emphasized that such practices undermine the bond of trust between member states and their citizens, as well as between the EU states themselves. Malta's citizenship program has faced criticism not only for its commodification of citizenship but also for links to corruption, white-collar crime, and enabling sanctions evasion. Critics, including anti-corruption activists and EU officials, argue that such programs offer a pathway for money launderers and other criminal actors to gain entry into Europe. The ruling comes in light of a series of reforms Malta attempted to implement to address these concerns, including requirements for potential investors to own property worth €700,000 or pay a minimum annual rent, and to donate to local charities. Despite these modifications, the court found Malta to be non-compliant with EU standards relevant to citizenship and member obligations. Malta has benefited economically from the program, reportedly generating €1.4 billion since its inception in 2015, a fact highlighted by government officials trying to justify maintaining it despite the court's verdict. Ex-Prime Minister Joseph Muscat, who introduced the scheme, labeled the court's ruling as 'politically motivated', seeking reform over outright cancellation. Media commentary from Maltese journalist Matthew Caruana Galizia hailed the ruling as a victory for ordinary citizens and a protective measure against the abuse of citizenship by corrupt elites. Transparency International echoed support for the court's decision, asserting it prevents the further commodification of EU citizenship. The ruling's significance extends beyond Malta; it serves as a precedent for all EU members, disallowing similar programs henceforth. The backdrop of this ruling unfolds against a growing global scrutiny of citizenship-by-investment programs, particularly following geopolitical events like Russia's invasion of Ukraine, which raised fears about how these programs could inadvertently facilitate the entry of individuals linked to global conflicts and crime into the EU. This signals a shift among European nations towards more stringent regulations on how citizenship is granted, marking a notable change in policy direction on a sensitive issue of immigration and national integrity. Interestingly, this ruling coincides with proposed initiatives by other nations, such as former U.S. President Donald Trump's 'gold card' visa program offering pathways to citizenship for hefty investments.