EU's Top Court Rules Malta's Sale of "Golden Passports" Illegal | WPN World People News

On April 28, the European Court of Justice, the highest court in the European Union, ruled that the Republic of Malta's sale of so-called "golden passports" violates EU law and ordered the immediate termination of the program. The court stated that selling these passports amounts to turning nationality and EU citizenship into a commercial transaction, undermining trust and cooperation among member states.

The court ruled that Malta’s long-running "golden passport" scheme contravenes EU regulations. The program allowed non-EU nationals to obtain Maltese citizenship through investment, thereby granting them free movement and residency rights across EU member states.

The court acknowledged that the granting of nationality falls within the sovereign rights of member states. However, it emphasized that if such actions affect the collective interests and identity of the EU, they must adhere to fundamental EU legal principles. The ruling stressed that Malta’s approach treats EU citizenship as a commodity, violating the “genuine link principle” and core EU values.

The case was brought by the European Commission, which accused the Maltese government of granting citizenship solely based on investment, without requiring genuine residence, language skills, or cultural integration. The Commission argued this practice poses risks to the EU system, including money laundering, tax evasion, and security vulnerabilities.

The Maltese government expressed "regret" over the ruling but pledged to comply with the decision and review its policies accordingly. Over the past decade, Malta’s golden passport program has attracted hundreds of wealthy applicants from Russia, China, the Middle East, and elsewhere, generating hundreds of millions of euros in revenue.

The European Commission welcomed the ruling, calling it a significant legal precedent for other member states still operating similar schemes. It stated that it will step up scrutiny of nationality and residency programs across the EU to ensure legal consistency and safeguard the Union’s security.