Citizenship in Europe is highly valued, with stringent requirements for foreigners. Malta has taken a controversial route by selling citizenship to wealthy individuals, leading to tensions with the EU. Critics argue against this commodification, citing potential abuses, while Malta’s program has provided economic benefits. Other EU countries have also faced scrutiny over similar practices. The ethical debate continues, highlighting the complexities surrounding citizenship, merit, and legal rights within the EU framework.
Value of Citizenship Across Europe
Citizenship is an esteemed asset throughout Europe, whether in Switzerland, France, Germany, or Austria, and foreigners must meet specific qualifications to attain it. New citizens, particularly those with migrant backgrounds, often find themselves under scrutiny. For instance, sons of migrants who represent the national football team may be perceived as only partially integrated if they don’t sing the anthem with gusto. Despite their substantial contributions on the field, societal perceptions can remain unchanged.
Malta’s Controversial Citizenship Sales
In contrast, Malta, the EU’s smallest member state, has adopted a pragmatic approach to citizenship. The Maltese government actively sells citizenship to affluent foreigners, a move that has sparked tension with the EU, leading to legal action against Malta at the European Court of Justice (ECJ).
The debate encompasses both moral and legal dimensions. Viviane Reding, former EU Commissioner, has strongly opposed the sale of citizenship, arguing that passports and nationality should not be treated as commodities. The EU Commission believes that individuals seeking citizenship in an EU member state should demonstrate a genuine connection to that country. There are also concerns about potential abuses, such as money laundering and corruption linked to the sale of passports. These apprehensions are echoed by the OECD.
Recently, however, the EU faced a significant setback in its legal battle. Advocate General Anthony Collins stated that EU member states retain the right to grant citizenship independently, as stipulated in the Maastricht Treaty. Moreover, EU law does not mandate a necessary connection between the state and its citizens.
Malta’s Citizenship Program and Its Impact
Since 2013, Malta has been granting citizenship through a structured program that has become a vital source of revenue for the nation, aiding in economic recovery during the pandemic, as noted by Prime Minister Robert Abela. The application process is rigorous, with strict vetting procedures in place. Notably, Russians and Belarusians have been excluded from this program since March 2022 due to the ongoing conflict in Ukraine.
To gain Maltese citizenship, applicants must be financially stable but not excessively wealthy. They are required to contribute €600,000 to the state budget and either purchase property worth at least €700,000 or lease property with a minimum annual expenditure of €16,000. In 2023, Malta naturalized 259 individuals through this initiative, with a cap of 400 approvals per year.
Comparative Perspective on Passport Sales
Countries globally have adopted similar strategies to sell citizenship, with Malta not being the only EU member to do so. Bulgaria and Cyprus previously had similar programs but abandoned them amid scrutiny. Many clients in these programs were from Russia, and the Bulgarian model was halted following the invasion of Ukraine, while Cyprus discontinued its program in 2020 after a probe revealed numerous illegal sales.
Possessing an EU passport offers significant advantages, such as unrestricted movement within the EU and visa-free travel to numerous countries worldwide. Consequently, acquiring Maltese citizenship represents an investment in mobility.
While the Maltese government has not disclosed the nationalities of applicants, legal analysts note a surge in interest from Americans seeking a contingency plan amid rising polarization in their homeland. Meanwhile, applicants from China and Saudi Arabia are also reportedly increasing.
The ethical implications of citizenship sales are debated, with critics arguing that condemning such practices lacks coherence. Christian Joppke, a sociology professor at the University of Bern, emphasizes that citizenship is often a matter of birth rather than merit. He contends that Malta’s approach is acceptable as long as it does not discriminate against applicants based on their origin.
Legal experts have challenged the EU’s arguments, suggesting a conflation of passport sales with corruption, a separate issue that should be addressed independently. The rationale behind the EU’s legal actions against Malta remains ambiguous, with speculation that internal pressures influenced the decision. Nevertheless, the commission’s stance appears inconsistent, as many EU members have unique naturalization procedures that lack transparency.