By Necva Tastan Sevinc
ISTANBUL (AA) - The European Court of Justice (ECJ) on Tuesday ruled that Malta’s controversial golden passport program, which grants citizenship in exchange for investment, breaches EU law.
The court found that Malta’s scheme erodes the principle of mutual trust between member states by "commercialising" EU citizenship and undermining the solidarity and good faith necessary within the bloc.
"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 in its ruling.
The case was referred to the ECJ after the European Commission initiated infringement proceedings against Malta in 2020, arguing that the program allowed wealthy foreigners to obtain EU citizenship without establishing any genuine connection to the country.
Despite years of warnings and legal wrangling, the Mediterranean island nation maintained the program, making only limited adjustments.
Although EU member states have the authority to decide on citizenship matters, the court emphasized that granting nationality purely for financial contributions compromises the integrity of EU citizenship, which includes rights such as living, working, and voting across the union.
The scheme, launched in 2020, allowed third-country nationals to acquire a Maltese passport through investments in government-approved financial instruments, real estate purchases, and a €10,000 ($11,384) donation to a local NGO, according to Transparency International.
In response to the February 2022 start of the Russia-Ukraine war, Malta suspended applications from Russian and Belarusian nationals that March but continued to operate the program for other nationalities.
The European Commission welcomed the ruling, reiterating that "EU values are not for sale," a message previously stressed by then-Justice Commissioner Didier Reynders.
Malta must now comply with the judgment without delay or risk further legal action and financial penalties.