Malta's citizenship by investment scheme and the European Union institutions

Abstract

This dissertation explores the dynamics of European Citizenship, the implications of Malta’s Citizenship by Investment (CBI) scheme and the response of the European institutions. Malta’s Citizenship by Investment (CBI) scheme, launched in 2014, allows individuals to obtain Maltese citizenship through financial investments. This has raised concerns about the integrity of European citizenship. The Maltese government has maintained the CBI scheme, despite the propositions from European Institutions to abolish it. Through a comprehensive analysis of different academic literature, articles, legal documents and reports, this dissertation examines European Citizenship and the European Institutions’ concerns regarding Malta’s scheme. Using a qualitative case study, the analysis of Malta’s CBI scheme shows the EU Institution’s multifaceted responses when addressing the challenges posed by the CBI scheme in the EU. The “genuine link” criteria questions whether Malta’s CBI complies with the values of European Citizenship and EU laws. This criterion is essential as the EU Institutions continue to pinpoint the importance of this link to European Citizenship. The European Commission (EC) and European Parliament (EP) have been vocal about the risks that come with Malta’s CBI scheme, such as security threats, money laundering and breaches of EU Law. Due to these implications, the international effect of Malta’s CBI scheme is analysed through the Russia-Ukrainian war and how the halt of the scheme to Belarussian citizens affected Malta’s scheme. Furthermore, this dissertation analyses the actions taken by these institutions to address these concerns, which led to the European Commission’s infringement procedure against Malta in the Court of Justice of the EU (CJEU). The Maltese government have kept the CBI scheme in place, defying the propositions made by the European Institutions. The results conclude that Malta’s CBI scheme goes against EU Law, norms, and values, which prompted the EU Institutions to urge Malta to halt the scheme.