The European Court of Justice (CJEU) issued an opinion stating that the European Commission failed to prove that EU law requires a “genuine link” or “prior genuine link” to grant citizenship to citizens. CJEU Advocate General Anthony Collins released an opinion on Friday, October 4th, in which he highlighted that the lawyers of the European Commission failed to demonstrate that EU law demands a genuine link between passport applicants and member states.
According to Collins, it is the sovereign right of EU member states to determine who qualifies to be their nationals and consequently become EU citizens. The ongoing legal dispute between the European Commission and Malta regarding the controversial “golden passport” scheme will be guided by Collins’ opinion when the final ruling is issued by the Luxembourg-based court in the coming months.
The Maltese government received a favorable opinion from the CJEU Advocate General, countering the European Commission’s repeated calls for Malta to immediately halt its “golden passport” scheme aimed at attracting investment. In October 2020, the European Commission initiated legal proceedings against Malta and Cyprus regarding their golden passport programs, accusing these countries of promoting corruption and money laundering by selling citizenship to foreign wealthy investors in exchange for investment.
Cyprus announced the abolition of its citizenship program in October 2021. A report by the European Parliament in 2022 revealed that the so-called investment migration industry has brought substantial profits to Europe, with participating countries netting over €21 billion from 2011 to 2019.
Malta introduced the “golden passport” scheme targeting global ultra-high-net-worth individuals in 2014. Under this citizenship by investment program, individuals could acquire citizenship by making a minimum donation of €60,000 (approximately $66,000), purchasing real estate, and making voluntary donations. Holding a Maltese passport allows citizens to live and work freely in the 27 EU member states.
Wealthy individuals from Russia and China are believed to be the primary beneficiaries of these schemes. Countries like Portugal, Ireland, Greece, and Hungary have also had similar programs that grant wealthy individuals valuable EU freedom of movement rights. However, due to strong opposition from the European Commission, these countries have gradually phased out their immigrant programs.