ECJ Advocate General Backs Malta in Landmark EU Citizenship Case

In a significant development for EU citizenship law, the European Court of Justice Advocate General Anthony Michael Collins has recommended that the Court dismiss the European Commission’s case against Malta’s citizenship by investment program. If the court follows this opinion, it could reshape the landscape of investment-based citizenship schemes across the EU.

Advocate General Collins proposed that the court “dismiss the Commission’s action and order the Commission to pay its costs and those of the Republic of Malta.” This recommendation strongly endorses Malta’s position and is a setback for the Commission’s efforts to curtail CBI programs.

In the detailed explanation of his conclusion, Advocate General Collins pointed out that “the Commission has failed to prove that, in order to lawfully grant citizenship, EU law requires the existence of any ‘genuine’ or ‘prior genuine’ link between a Member State and an individual other than that required under a Member State’s domestic law.”

Throughout the case, Malta has steadfastly defended its MEIN Policy, arguing that citizenship matters fall within national competence. “Granting citizenship is a matter of national sovereignty, supported by international law and the Treaty on European Union,” Malta’s representatives maintained during the hearing.

The opinion appears to vindicate Malta’s position. During court proceedings, Malta emphasized its “rigorous due diligence and security measures” to ensure new citizens pose no risks to the EU.

This development challenges the Commission’s argument that Malta’s program lacks a “genuine link” between applicants and the state. The Commission had contended that EU citizenship “should not be commoditized without a substantive connection to the member state.”

If the court adopts the Advocate General’s recommendation, it could have far-reaching implications. Other EU countries with similar programs, like Cyprus and Bulgaria, may feel emboldened to continue or even expand their schemes.

However, the final decision rests with the European Court of Justice. While the court often follows the Advocate General’s opinion, it is not bound to do so. The judges will now deliberate before issuing their final ruling.

Background of the Dispute:

The dispute began when Malta introduced its CBI program to stimulate economic growth through foreign investment. Initially, the European Commission refrained from commenting, stating it was “for each member state to lay down the conditions for the acquisition of its nationality.” By 2019, the Commission expressed security concerns, which Malta addressed by enhancing its due diligence procedures.

The Commission then shifted its focus to the lack of a genuine link between applicants and Malta, asserting that the program undermines EU principles. Malta insists that its program complies with EU law and respects national sovereignty over citizenship matters.