The European Commission has again expressed disquiet about Malta’s citizenship scheme for investors, which it has every entitlement to do. It has formally communicated with Malta about a subject whose competence lies only with individual member states. Everyone is free to express an opinion, but it only makes sense to go down the legal route when you have the law on your side.
That said, Malta, as a responsible member of the European Union, is not seeking conflict. It is happy to listen to the concerns of others, and act on good suggestions. We have actually been operating in this constructive manner all along. We heard the criticism made about the Individual Investor Programme (IPP) and decided to bring it to an end and replace it with an improved initiative, built on residency that can lead to citizenship.
The new regulations are attracting fresh talent to Malta. It is being administered in a highly responsible fashion, and it is of great benefit to all Maltese and Gozitans, generating an important revenue stream.
We are reaping great benefits from our initiatives. New medical facilities, refurbished health centres and much improved social housing are just a few examples
The European Commission is pressuring small member states to abandon their initiatives. Our position is clear: we are the only ones responsible for the granting of Maltese citizenship. We insist on this position as a point of principle. Apart from this, we are reaping great benefits from our initiatives. New medical facilities, refurbished health centres and much improved social housing are just a few examples.
The way Malta confers citizenship does not undermine the mutual trust of member states, because it is at par with initiatives that other EU member states have in place. In fact, every year, the European Union welcomes approximately two thirds of a million new citizens. The vast majority of these are subject to no checks.
By contrast, applications for our initiative of residency leading to citizenship is limited to a few hundred a year. Every applicant is thoroughly checked out by security agencies regarding money laundering and any illicit activity. What’s more they need to have resident status for three years or, if investing a higher amount, one year before they are even allowed to apply for citizenship. The critics who cry “these people could be anybody” should direct their fears at the other two thirds of a million new EU citizens, not the ones Malta analyses in great detail.
Malta has been upfront about its initiative because it thinks ingenuity should be celebrated, not have a shadow cast over it. We publish the names of all new citizens, invite them to contribute to charities and good causes and show them the investment opportunities available in a country with such a positive attitude to enterprise and success.
The project is administered by a new agency, Community Malta. It has an obligation to keep monitoring applicants for the first five years after they are granted citizenship. If necessary, citizenship can be revoked with the names of these individuals published too. The agency also has the power to suspend or revoke Agents’ licences in the event of a breach of the rules.
We have engaged with the European Commission and are happy to continue doing so. But the fact is that citizenship is a responsibility of member states, not the Commission, and Malta is acting in a highly responsible manner and intends to continue doing so.