EU threatens to sue Malta over 'golden passport' scheme

The European Commission on Wednesday said it sent Malta an official notice to end its so-called "golden passport" scheme.

The practice of selling citizenship to rich individuals, also referred to as investor citizenship, has been most lucrative in Bulgaria, Cyprus and Malta.

But the Commission noted that both Bulgaria and Cyprus had moved toward ending the scheme. 

"The Commission considers that the granting of EU citizenship in return for pre-determined payments or investments, without any genuine link to the Member State concerned, is in breach of EU law," the bloc's executive said in a statement.

Malta has two months to reply to the official notice sent from Brussels. "If the reply is not satisfactory, the Commission may bring this matter before the Court of Justice of the European Union," the statement added. 

Scheme suspended for Russians and Belarusians

Malta is among several European countries which have suspended the investor residence schemes for Russian and Belarusian nationals. 

The move is part of a wider EU response to the Russian invasion of Ukraine. 

"While this was a positive step, Malta continues to operate the scheme for all other nationals and did not express any intention to stop it," the Commission said on Wednesday. 

The EU said the scheme's "inherent risks" were highlighted in light of the war in Ukraine, as some Russian and Belarusian nationals who were targeted by EU sanctions were holders of such passports. 

"Every person that holds the nationality of an EU Member State is at the same time an EU citizen. EU citizenship automatically gives the right to free movement, access to the EU internal market, and the right to vote and be elected in European and local elections," the Commission said. 

Malta is believed to have raised €1.1 billion ($1.2 billion) since 2013 by offering "golden passports."

fb/msh (Reuters)