Thu Jun 12 03:00:00 UTC 2025: **Summary:**
The European Court of Justice (ECJ) struck down Malta’s “golden passport” scheme, which allowed foreigners to gain citizenship and, consequently, EU citizenship in exchange for substantial investments. The EU Commission argued that this scheme violated EU principles of sincere cooperation, fairness, and non-discrimination by commodifying citizenship. The ECJ agreed, stating that granting citizenship as a commercial transaction undermined the mutual trust and respect among member states that underpin European citizenship. The article highlights the ongoing debate surrounding citizenship/residency by investment (CBI/RBI) programs and the inherent risks they pose to security within the EU, particularly concerning money laundering, organized crime, tax evasion, and corruption.
**News Article:**
**EU Court Halts Malta’s ‘Golden Passport’ Scheme, Citing Threat to European Values**
**Valletta, Malta – June 12, 2025** – In a landmark ruling, the European Court of Justice (ECJ) has invalidated Malta’s controversial “golden passport” scheme, which granted citizenship, and by extension EU citizenship, to wealthy foreigners in return for hefty investments. The decision, delivered in late April, upholds the European Commission’s argument that the program violated core EU principles.
The Commission argued that Malta’s program, which had only blocked access to Russians and Belarusians following the war against Ukraine, effectively put a price on European citizenship, undermining the shared values and mutual trust that bind the bloc. “European values are not for sale,” Commission President Ursula von der Leyen stated back in 2020, a sentiment now echoed by the ECJ.
The court reasoned that citizenship should be based on a genuine relationship between a state and its citizens, not on a commercial transaction. Granting citizenship as a commodity jeopardizes the pillars of European citizenship, which depend on mutual respect and solidarity among member states.
The ECJ’s ruling underscores the growing concerns surrounding “citizenship by investment” (CBI) and “residency by investment” (RBI) programs across Europe. These schemes, also known as “golden passports” and “golden visas,” allow individuals from outside the EU to gain access to the bloc in exchange for financial investments. Critics warn that these programs pose significant security risks, including money laundering, organized crime, tax evasion, and corruption.
Between 2013 and 2019, an estimated 132,000 individuals gained entry into the EU through CBI and RBI schemes, generating over €20 billion in financial inflows, according to a European Parliament report. Principal beneficiaries of these schemes include nationals from China, Russia, and West Asia.
While member states retain the sovereign right to determine their own nationality laws, the ECJ ruling makes it clear that these laws must be consistent with EU principles. The decision raises questions about the future of similar CBI schemes in other EU countries and puts pressure on the European Commission to address the broader issue of investment-based immigration. The EU Parliament and Commission have both called for both forms of mobility to be abolished.
Malta now faces a dilemma: it can continue to grant citizenship under its national laws, but without the automatic conferral of EU citizenship, a move that could significantly diminish the appeal of its program.
First Piper 