Transparency International warns that Malta’s Golden Passport ruling may revive citizenship-for-sale schemes in other EU countries
Eka Rostomashvili of Transparency International has raised concerns about the potential revival of citizenship-by-investment schemes, commonly referred to as “Golden Passport” programs, in the European Union. Following a recent ruling in favor of Malta’s Golden Passport initiative, other EU nations may be encouraged to reintroduce similar programs, she cautions.
Rostomashvili argues that the re-emergence of these schemes could significantly weaken the anti-corruption measures that have been established by EU authorities to date. “We are witnessing a substantial risk of golden passport programs making a comeback,” she stated. “This means EU citizenship could once again be accessible to those who can afford it, jeopardizing global anti-corruption efforts.”
EU Advocate General Voices Support for Golden Visa Programs
In a recent development, EU Advocate General Michael Collins stated that EU member states possess the authority to offer citizenship through Citizenship-by-Investment Programs, provided they implement stringent measures to maintain the integrity of the process. Collins responded to concerns raised by the European Commission, which argues that Malta’s program contravenes EU regulations.
The European Commission contends that Malta’s Golden Passport scheme violates Article 30 and Article 4(3) of the EU Treaty. In his opinion on the matter, Collins offered two key insights that could pave the way for the continuation of similar programs in other countries.
Firstly, Collins asserted that the EU’s constitutional definition of citizenship does not mandate a requirement for “genuine links,” a standard that he suggests was retroactively established by politicians and lacks legal grounding.
Secondly, he highlighted that Declaration No. 2 of the Treaty on the European Union reserves issues concerning nationality to individual member states.
According to Collins, EU countries can sell citizenship as long as they enforce strict due diligence procedures to uphold the integrity of their programs. Consequently, he recommended that the European Court of Justice dismiss the case against Malta.
Golden Passport programs allow international applicants to acquire citizenship in participating countries in exchange for significant financial contributions, with specific requirements varying by nation. Despite contributing substantially to the economies of these countries, such schemes have faced scrutiny due to their associations with illicit activities, including tax evasion, corruption, and money laundering.
As a result, the European Commission has repeatedly urged nations that offer these programs to phase them out as swiftly as possible.
