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Final Judgement on the Road for Malta’s CBI Program: Positive Notes from the Advocate General

Final Judgement on the Road for Malta’s CBI Program: Positive Notes from the Advocate General

Updated: 4 December 2024

Malta’s Golden Passport program became a topic of debate. The European Commission looked further into the EU rules on citizenship, stating that it is required to prove a genuine link or prior genuine link to obtain European citizenship. 

However, the commission’s arguments could not get the approval of the Advocate General. Though, there is another step before finalizing the destiny of the program, which is the European Court of Justice deciding on Maltese citizenship by investment program.

According to Advocate General Anthony Collings, the nationality issue is under the sovereignty of individual EU member countries. Therefore, they may retain the right to set their own conditions for granting citizenship, in this case, Maltese citizenship. His view, while not enforceable under law, is normally given considerable significance in the ultimate decision of the European Union’s Court of Justice.  

There is still no final judgment, and it is expected to be finalized later. Yet, the Maltese government views the Advocate General’s conclusion positively and finds the results encouraging.

Overview of Malta’s Citizenship by Investment Program

Malta’s ‘Citizenship by Naturalisation for Exceptional Services by Direct Investment system’, which was revised in 2020, enables non-EU individuals to acquire Maltese citizenship by making significant financial contributions to the country. 

Applicants need to meet a number of conditions, including acquiring property, investing in Maltese assets, and making a large contribution to the National Development and Social Fund. The so-called golden passports program, which was initially implemented in Malta in 2014 before being revised six years later, has sparked controversy from both within and outside the country.

Discussions by the European Commission

The European Commission filed the legal challenge, alleging that Malta’s system violates EU law, especially Article 20 of the Treaty on the Functioning of the European Union (TFEU). It said that the initiative allows citizenship to be awarded without the applicant proving a real or prior relationship with Malta, undermining the integrity of EU membership.

The Commission has already called on Malta and Cyprus to discontinue their programs. According to the Advocate General, the Commission failed to demonstrate that EU law requires such a relationship, which is not specifically specified in any EU treaty.

He went on to explain that, while EU legislation covers many aspects of citizenship, it does not define the particular prerequisites for obtaining it. These are at the discretion of national governments, in accordance with the ideals of national sovereignty and identity. He decided that Malta’s citizenship policy, which permits people to earn nationality by financial investments, does not violate EU law if it adheres to the country’s own laws.

Malta’s CBI Scheme: Who Has the Control, the EU or the Maltese Government?

In a statement, the Home Affairs Ministry welcomed the verdict as a confirmation of Malta’s position, noting that it confirms the country’s long-held belief that citizenship decisions should be left to national governments.

Minister Byron Camilleri stated that the ruling supports Malta’s claims, adding that citizenship is still an issue of national competence. Camilleri explained that, while the government would continue to attentively examine the ruling and its ramifications, the Advocate General’s findings represent a positive step forward in the continuing case. 

“While we await the ultimate decision, this is a positive step forward. “We will continue to work in the best interests of our country,” he stated.

As we can understand from the statements, the Advocate General’s opinion supports Malta’s citizenship by investment program and supports the idea that it is the country’s sovereign right. However, the final decision rests with the European Court of Justice.

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