Muscat hits out at passports 'political ruling', PN wants scheme suspended

Updated 4.15pm with Busuttil comment

Former prime minister Joseph Muscat defended the golden passport he first introduced to Malta, claiming it remained the best programme in the world. 

He described the EU court’s decision as “a political judgment” through which the court knew that the law was not on its side, and based its decision on reasoning that went beyond the law and against the advice of its own Attorney General.

On Tuesday, the Court of Justice of the EU ruled that Malta's golden passports scheme violates EU law. In the decision, that stemmed from a challenge by the European Commission, the court found that the acquisition of EU citizenship cannot result from a commercial transaction. 

The scheme to lure wealthy foreigners to the country, was first introduced in 2014 and amended in 2020. But the court ruled that it amounts to the commercialisation of EU citizenship and that Malta had infringed EU law.

Muscat - who stepped down as prime minister in January 2020 - said the court quoted transparency as one of the main reasons for its decision, insisting that the programme was built on transparency, unlike passport programmes used in other countries.

“I still believe that there is a case for the [passport] programme of Malta, that is the best in the world, to keep going on with some changes. Especially when the US announced a similar programme,” Muscat said.

He went on to criticise European Parliament president Roberta Metsola and the Nationalist Party for "working against the country" and the programme that had brought millions in investment to Maltese businesses and families.

Government must recognise its errors - PN

Opposition leader Bernard Grech said the court decision did what the Labour government failed to do for years - it protected the value and meaning of Maltese citizenship.

This was a binding final decision on the Maltese government. In light of this ruling, the PN called on the government to immediately suspend the passport programme in it current form, launch a clear plan with a schedule of amendments to Maltese law to implement the European Court’s decision, and publicly declare that it fully accepts the ruling in the interest of safeguarding the country’s reputation.

“The Labour government must focus on what truly matters: the best interests of the country and its responsibilities as a member state of the European Union. This is a moment that calls for national unity, where the government must recognise its errors, be transparent, and work to restore Malta’s good name,” Grech said.

In a social media post, Nationalist MEP David Casa said “we were right” and said he was proud that - together with Metsola, Simon Busuttil, Beppe Fenech Adami, Karol Aquilina and Jason Azzopardi - he was on the right side that protected the Maltese. He added that the Labour government had caused damage to Malta’s reputation.

European Parliament president Roberta Metsola said the court has established what we have always known: the acquisition of EU citizenship cannot result from a commercial transaction.

"For the best part of the last decade, we have warned that selling Maltese passports and EU citizenship to third country nationals without any genuine link violates EU law, and that the decision to hook up the nation's economy on this get-rich-quick scheme was legal and economic recklessness, that undermined our economic strategy, damaged our reputation and left huge holes in the security of our country and our Union."

"It was short-termism at its worst that has left the weakest Prime Minister Malta has ever known, exposed. They are stuck, out of ideas, with no other plans to grow our economy, and back to their same tired playbook of blaming invisible enemies instead of owning up to their own tragic errors of judgement."

Busuttil described the judgment as a massive legal breakthrough which would also have implications for other EU countries.

"Selling citizenship is not just morally wrong - it is also legally wrong. But as usual, the Labour government has to be dragged screaming to get it to do the right thing," the former PN leader said.

Closing the door to corruption

In a joint statement, Transparency International and the Daphne Caruana Galizia Foundation said that the ruling “will close one door to corrupt actors buying their way into the EU”.

Transparency International’s chief executive officer Maíra Martini said the judgment confirmed that member states cannot commodify EU citizenship and operate reckless golden passport programmes.

“Countless cases have shown how these schemes have granted safe haven in the EU to corrupt actors from around the world and other suspicious individuals. The ruling stops not only Malta from selling EU citizenship, but will also prevent other member states from doing the same,” he said.

Director of Transparency International EU Nick Aiossa said the case transcended national citizenship - it was about putting an end to a dangerous policy that commodified the EU’s four freedoms.  

Matthew Caruana Galizia, director of the Daphne Caruana Galizia Foundation, added that the foundation’s research showed that investment migration programmes bring little benefit to Malta.

“The CJEU judgement is a win for the people of Malta and for all EU residents who have been unfairly exposed to the whims of money launderers and corrupt criminals buying their way into the EU. We urge the government to comply with the ruling and abolish its citizenship-by-investment programme without delay – and tackle the risks posed by the golden visa scheme next,” he said.

NGO Repubblika welcomed the decision, saying that the sale of passports over the past decade depicted Malta as a country that was only concerned about money, with no other value attached to citizenship.

“This decision is not a defeat for Malta. It is a defeat for the government that introduced and kept the measure and ignored protests and reasoned objections,” the NGO.

It called for an immediate stop to the programme and the review of any citizenship given through the scheme. It also called for an amendment to the Constitution to clearly define what Maltese citizenship is.

MDA 'very disappointed' 

In a statement, the Malta Development Association (MDA) said it is "very disappointed" at the EU's court decision, and encouraged the government to amend rather than scrap the programme. 

It said it was also surprised that the ruling ignored and overturned the legal opinion given by the ECJ's own advocate general.

"The programme has been of great benefit for the economic development of the country and the MDA encourages the government to amend rather than abort it," the statement read. 

MDA also urged all political parties to rise "beyond partisian politics" in issues of national importance.

Citizenship obtained through scheme should be revoked: ADPD

ADPD chairperson Sandra Gauci said:

"The Green Party expects immediate compliance with EU laws and the prompt cessation of the Golden Passport scheme; citizenship obtained through this scheme which has been declared illegal by the European Court should be revoked forthwith.”

She added that the party had been pointing out the inherent flaws in this scheme since its inception in 2014.