EU court strikes down Malta's golden passport scheme
The European Court of Justice (ECJ) has ruled that Malta's controversial golden passport scheme breaches EU law, dealing a blow to the practice of selling citizenship in exchange for investment.
In a landmark judgment, the court said that offering EU nationality as a commercial transaction violates the foundational principles of European integration and solidarity. The ruling compels Malta to dismantle the scheme or face potential penalties.
Launched in 2013 and formalised in 2020, Malta's programme allowed affluent foreigners to obtain citizenship by making a minimum investment of EUR 600,000, donating EUR 10,000 to charity, and either buying or renting property. Applicants were also required to live in Malta for three years — a requirement reduced to one year for those contributing at least EUR 750,000.
Successful applicants received a Maltese passport, granting them the right to live, work, and vote across the EU under the bloc's freedom of movement laws.
The scheme has long drawn criticism from EU institutions, anti-corruption watchdogs, and civil society groups, who argued it posed risks of money laundering, tax evasion, and national security breaches. A 2021 investigation by The Guardian found that several wealthy individuals obtained citizenship after spending mere weeks in Malta and maintaining only nominal ties to the country.
Addressing such concerns, the ECJ ruled: 'A member state cannot grant its nationality — and indeed European citizenship — in exchange for predetermined payments or investments, as this essentially amounts to rendering the acquisition of nationality a mere commercial transaction.'
The court said Malta had 'failed to fulfil its obligations' under EU treaties, adding that citizenship 'is one of the principal concrete expressions of the solidarity which forms the very basis of the process of integration… an integral part of the identity of the European Union.'
The decision aligns with earlier EU pressure that led Cyprus and Bulgaria to dismantle similar schemes, citing systemic risks of corruption and abuse.
Malta's government issued a cautious response, stating it is 'studying the legal implications of the judgment in detail' and intends to align its citizenship framework with the court's guidance. However, it also defended the scheme's economic benefits, noting it had generated over EUR 1.4 billion since 2015 and approved more than 5,300 applications by the end of 2023.
The ruling has drawn praise from EU lawmakers and transparency advocates. Daniel Freund, a Green MEP, welcomed the verdict, saying: 'European passports are not for sale. Criminals, autocrats, and terrorists should not be able to buy a ticket into the EU.'
The ECJ's decision sets a significant precedent and may reshape citizenship policies across the bloc.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
2 hours ago
- Indian Express
Week after UK deal, EU and India wrap up IPR, talks on carbon tax left
A week after India announced its trade deal with the UK amid tariff threats from US President Donald Trump, the European Union and India have made significant progress in their trade talks between May 12 and May 17, closing as many as five chapters including the challenging area of intellectual property rights (IPR), a status report released Tuesday by the EU said. The conclusion of the UK deal is an 'important factor' in Delhi's trade negotiations with Brussels, a government official told The Indian Express, since UK's exit from the EU single market in 2020 had given rise to tensions between London and Brussels over new checks, paperwork and delays that particularly affected goods trade between the two partners. India has given market access to a number of product categories where the EU and the UK are competitors, particularly spirits, medical equipment and cars. An early deal with India has already given the UK a first-mover advantage in the Indian market. Progress on goods trade The EU report on the 11th round of talks between the two sides said that 'good progress' was made in the trade in goods chapter and that the chapters on transparency, good regulatory practices, customs and trade facilitation, IPR, as well as mutual administrative assistance provisions, were closed. There are a total of 23 chapters being covered in the India-EU talks, out of which five have been wrapped up. While both sides made headway in tariff discussions on industrial products – with India and the EU 'signalling their positions for industrial products' – talks on the agri-food sector continued 'with the aim to enhance the level of clarity about both sides' positions,' the report said. Negotiations on goods assume significance as an EU official had said that the trade deal with India hinges on Delhi's commitment to lowering duties on cars, amid an ongoing crisis in the European automobile sector. Moreover, the EU is seeking better access to India's wine and spirits market, in line with the access already granted to the UK. CBAM negotiations remain However, the report on the 'Energy and Raw Materials' chapter said: 'It had been agreed ahead of the round that discussions would be put aside for the time being.' Negotiations on this chapter are significant as India's metal exports to the EU continue to face restrictions. Official data for April to June showed that the EU slashed India's quota for hot-rolled coil (HRC) by 23.7 per cent, sharply restricting access for a key export item. Data showed that steel and aluminium shipments to the EU dropped by 24.4 per cent – from $7.71 billion to $5.82 billion in FY25 compared to the previous financial year. 'If these issues are not squarely addressed in the FTA, Indian exporters will continue to face steep EU barriers, while EU goods could enjoy zero tariffs into India. India missed the opportunity to rectify this imbalance in the UK FTA; it cannot afford to make the same mistake with the EU. A fair FTA must remove discriminatory quotas, secure CBAM (carbon border adjustment mechanism) carve-outs or compensation, and preserve India's policy space to grow its industrial base,' said Ajay Srivastava, former trade official and founder of the Global Trade Research Initiative (GTRI). Srivastava said that unlike the US – its recent 50 per cent steel and aluminium tariffs are harsh but clearly defined – the EU's trade barriers are complex and opaque. Under the EU's safeguard measures, Indian steel faces a strict country-specific tariff-rate quota (TRQ) system – where volumes beyond a narrow quarterly quota attract a 25 per cent out-of-quota duty, he said. On services and investment, the report said that negotiators discussed and made 'substantial progress' in agreeing on the services text, as well as planning for an initial exchange of offers on services. Detailed text-based discussions were held on the liberalisation of investment in areas beyond services, the report said. Substantive progress on digital trade Negotiators also made substantive progress on digital trade, particularly on digital trade facilitation provisions such as e-invoicing, e-authentication, e-contracts, paperless trade, online consumer protection, spam, digital identities and open government data. The digital trade chapter in trade negotiations typically addresses rules and commitments related to online commerce and the cross-border flow of data and digital services. This part of the negotiations addresses 'cross-border data flows', where trade partners decide on commitments to allow the free flow of data across borders – crucial for e-commerce and global services. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
United News of India
3 hours ago
- United News of India
Maha Guv urges Portugal to focus on select sectors to increase trade volume
Mumbai, June 10 (UNI) Maharashtra Governor C P Radhakrishnan on Tuesday suggested that Portugal should focus on select sectors such as infrastructure, information technology, tourism, and textiles, and make efforts to increase the current trade volume from USD 1.2 billion to at least USD 10 billion. According to a statement issued by the Governor's house, the suggestion was made during a courtesy meeting between Ambassador of the Republic of Portugal in India, João Manuel Mendes Ribeiro de Almeida, and the Governor of Maharashtra at Raj Bhavan, here. Stating that Portugal and India share a historical relationship, the Ambassador said Portugal is now focusing on the future and is keen to enhance cooperation with India across various sectors, including trade. In this context, he said, Portugal is also interested in signing a memorandum of understanding with Maharashtra. The Ambassador mentioned that this year holds special significance for both India and Portugal, as it marks the 50th anniversary of the re-establishment of diplomatic relations between the two nations. He informed that efforts are underway to strengthen bilateral cooperation in areas such as trade, tourism, textiles and information technology. He told the Governor that he was meeting over 100 business representatives in Mumbai. The Ambassador also informed that around 1.25 lakh Indians reside in Portugal and that they had integrated well into Portuguese society. He said Indians possess a wide range of skills and added that Portugal currently has a growing need for skilled manpower. Sharing that Portugal is ranked the fifth safest country in the world next only to the Scandinavian countries, the Ambassador added that Portugal is a leading destination in global tourism. He expressed Portugal's interest in increasing cooperation with India in the field of tourism. The Ambassador also shared that Portuguese is spoken in around 15 countries, including Portugal, Brazil, Mozambique, Angola, East Timor, among others. Welcoming the Ambassador to Maharashtra, Governor Radhakrishnan noted that Spanish and Portuguese are widely spoken languages across the world. He told the Ambassador that in his capacity as Chancellor of universities in Maharashtra, he has advised universities to offer at least one European language to the students. He noted that learning foreign languages would help students explore career and business opportunities internationally. UNI AAA SS
Time of India
4 hours ago
- Time of India
Proud of how MPs advocated India's voice, says PM Modi
NEW DELHI: PM Narendra Modi on Tuesday commended the seven multi-party delegations for effectively representing India's stance in global capitals following Operation Sindoor , a decisive strike against terrorist hubs in Pakistan and PoK. "Met members of various delegations who represented India in different countries and elaborated on India's commitment to peace and the need to eradicate the menace of terrorism. We're all proud of the manner in which they put forward India's voice," PM said on X. Over 50 representatives from the delegations, who visited 33 foreign capitals and the EU, called on Modi to share their experiences. Congress MP Shashi Tharoor said the PM was "very pleasant" to the delegation members, seeing it as an opportunity to thank them. "He walked around the lawn to different tables, talking to different groups of people... It was a good, lively, informal meeting," Tharoor said, adding that MPs shared insights and suggested such visits be made a regular practice, which the PM seemed to support. The delegations - comprising current and former MPs and ex-diplomats - conveyed India's firm stand against Pakistan-linked terrorism and its commitment to global peace. EAM S Jaishankar had earlier praised the delegations for highlighting India's position.
