European Commissioner Viviane Reding this evening welcomed the agreement reached with the government on the citizenship scheme, She said in a tweet:

"Glad that thanks to  support from European Parliament, constructive cooperation with the Maltese, we found a solution on the Maltese citizenship issue."

In a statement, Commissioner Reding's office said:

"On 29 January 2014, representatives of the European Commission's services and of the Government of Malta met on the issue of the Individual Investor Programme of the Republic of Malta.

The Maltese representatives presented their intentions regarding further amendments to the regulations issued under the Maltese Citizenship Act (L.N.450 of 2013), with a view to clarify that this Programme will confer full rights, responsibilities and a full citizenship status.

The amendments include genuine links to Malta through the introduction of an effective residence status in Malta prior to the possibility to acquire Maltese naturalisation.

No certificate of naturalisation will be issued unless the applicant provides proof that he/she has resided in Malta for a period of at least 12 months immediately preceding the day of issuing of the certificate of naturalisation.

In addition, the Government of Malta informed the Commission's services about its intention to evaluate whether an increase would need to be made to the current capping of main applicants under the Individual Investor Programme.

The Commission's services welcomed the announced amendments concerning the residence requirement – done in good faith and in a spirit of sincere cooperation and both parties express satisfaction about the understanding reached on this issue."