Further measures, in the context of infringement proceedings against Cyprus and Malta, concerning their citizenship schemes to investors, also known as “gold passports”, received on Wednesday (09/06) the European Commission.
The Commission considers that these two Member States, by establishing and implementing citizenship schemes for investors in exchange for predetermined payments or investments, are not fulfilling their obligations under the principle of good faith (Article 4 (3) TEU) and its definition. citizenship of the Union as defined in the Treaties (Article 20 TFEU).
Although the Cyprus and the Malta remain responsible for the decision to grant Cypriot and Maltese citizenship, respectively, The EU Court of Justice has repeatedly made it clear that the rules on acquiring citizenship of a Member State must ensure that “Union law shall be duly taken into account”.
The Commission initiated these proceedings by sending warning letters in October 2020. While Cyprus abolished its system and stopped accepting new applications as of 1 November 2020, continues to process pending applications.
The Commission therefore decided today to take the next step in the infringement procedure against Cyprus by sending a reasoned opinion. The Commission considers that the concerns expressed in the warning letter were not addressed by the Cypriot side.
As far as Malta is concerned, the Commission has also decided to take further action. While the previous system of granting citizenship to investors is no longer in force, the country introduced a new system at the end of 2020.
The Commission today decided to send an additional letter of formal notice to further raise concerns – following those set out in the letter of formal notice – about the new regime implemented by Malta.
Cyprus and Malta now have two months to take the necessary measures to respond to the Commission ‘s concerns.
In the case of Cyprus, if the answer is unsatisfactory, the Commission may refer the case to the Court. In the case of Malta, if the response is unsatisfactory, the Commission can take the next step in the procedure and send a reasoned opinion on the matter.
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