Malta will fight against the infringement proceedings initiated by the European Commission regarding its Individual Investor Programme (IIP).
According to local newspaper Times of Malta, Maltese parliamentary secretary Alex Muscat said that nationality and citizenship are a matter of state sovereignty, and that Malta will “defend this position” even if the case gets to the European Court of Justice.
But Malta is hoping that the updated rules for its citizenship-by-investment scheme will address the Commission’s concerns.
The old IIP, which generated around €1.5bn (£1.3bn, $1.8bn) in six years, will be replaced with a different scheme. Under the newly introduced programme, people who invest €750,000 will be able to apply for citizenship after residing on the island for a year.
Alternatively, those who invest €600,000 will need to spend three years in Malta before applying.
Additional requirements consist of passing an eligibility test as well as purchasing a property for at least €700,000 and make a €10,000 philanthropic donation.
A game of ‘geopolitical poker’
Paddy Blewer, director and group head of communications at immigration law firm Henley & Partners, accused the EU to be playing politics with Malta’s and Cyprus’ golden visa schemes.
He told International Adviser: “The Commission’s move is a short-term political gamble with short/medium- and long-term risks. They clearly felt there was a window of opportunity to attack a policy that certain EU stakeholders do not like.
“However, according to the vast majority of independent EU legal specialists, the legal case, that is the basis of their political position, is remarkably weak. It raises serious questions on the erosion of member state sovereignty vs centralisation of power in Brussels.
“Would France or Germany be comfortable with Brussels dictating how they define their citizenship and residence legislation? If Malta and Cyprus choose to defend their sovereign rights – and initial suggestions are they will – it will be interesting to see if the Commission will continue to pursue a legally weak position.
“It’s geopolitical poker. The Commission is a well-known successful player and pretends to be confident but they have a very weak hand. If Malta and Cyprus and other sovereign states call the Commission’s bluff on this case, Brussels might have to fold to avoid longer-term political damage.”
