Malta’s ‘golden passports’ initiative was discontinued. Why?

• The European Court of Justice (ECJ) has ruled against Malta’s ‘golden passports’ scheme, a 2020 scheme that allows foreigners to naturalize in Malta for substantial financial investments.

• The EU and the Parliament have called for the abolition of these mobility schemes due to security risks such as money laundering, organised crime, tax evasion, and corruption.

• Between 2013 and 2019, about 1,32,000 people obtained EU entry through CBI and RBI schemes, generating over €20 billion in financial inflows.

• The European Commission argued that the attractiveness of Malta’s CBI scheme was not in the acquisition of Maltese nationality but in the rights that accrue from the complementary EU citizenship.

• The EU argues that the grant of nationality in return for investments is incompatible with the principles of membership of the bloc, including sincere cooperation, fairness, and non-discrimination.

• The ECJ verdict stated that the pillars of European citizenship are dependent on mutual trust among member states and respect for national decisions.

• The 2020 Maltese scheme is seen as commercializing the grant of nationality of a particular state, and by extension, the entire bloc, which is incompatible with EU treaties.