EU Court Rules Malta's Golden Passport Program Illegal

The Big Picture

The European Union's top court has declared Malta’s "golden passport" scheme illegal. The Court of Justice of the European Union (CJEU) ruled on Tuesday that selling citizenship to foreign investors violates EU law and damages trust between member states.

What Happened

Ruling: The CJEU said Malta’s scheme was essentially the “commercialisation of citizenship.”
Background: Malta launched the program in 2014. It offered citizenship — and with it, EU rights — in exchange for investments starting at €600,000.
Legal action: The European Commission took Malta to court in 2022, arguing the scheme broke EU rules.

Why It Matters

EU citizenship: Getting a Maltese passport means automatic access to all EU benefits, including free movement, work, and voting rights.
Abuse concerns: The scheme attracted wealthy individuals, including Russian nationals under sanctions. Critics say it opened the door to misuse and money laundering.
EU stance: “European citizenship is not for sale,” a European Commission spokesperson said. The Commission called for all similar programs across the EU to end.

Malta's Response

Compliance: The Maltese government said it will follow the court's ruling and study its legal impact.
No retroactive effect: Those who already gained citizenship under the program will not be affected.
Financial gain: The scheme brought in hundreds of millions of euros, according to Maltese officials.

Broader Impact

Similar programs: Cyprus and Bulgaria have already shut down their own golden passport schemes. Cyprus has also started canceling some previously granted passports, mainly to Russian citizens.
NGO reaction: Transparency International welcomed the ruling. CEO Maíra Martini said the court sent a clear message that “EU citizenship is not a commodity.”

Political Angle

Muscat’s criticism: Former Maltese Prime Minister Joseph Muscat, who introduced the scheme, criticized the decision. He called it “politically motivated” and accused EU Parliament President Roberta Metsola of acting against Malta’s interests.
Legal issues: Muscat is currently under prosecution in Malta for alleged corruption.

What’s Next

Malta is now expected to adjust its laws to comply with the EU ruling. The European Commission has signaled it will continue pushing for the end of all citizenship-by-investment schemes within the bloc.

Bottom Line

The EU is cracking down on programs that turn citizenship into a product. Malta’s case marks a major shift in how the bloc handles national decisions that affect EU-wide rights.