Malta Responds To ECJ Ruling: Will Study Legal Implications

Malta commits to “bring framework in line with judgment” while defending economic benefits of citizenship program after ECJ defeat.

The Government of Malta has issued an official response to yesterday’s European Court of Justice ruling against its Maltese Exceptional Investor Naturalization (MEIN) Policy , stating it will respect the decision while studying the legal implications in detail.

In an official statement, the government emphasized it plans to “bring the regulatory framework on citizenship in line with the principles outlined in the judgment.”

The government noted that despite yesterday’s ruling, “decisions taken under both the current and the previous legislative framework remain valid,” offering reassurance to existing investors who obtained citizenship through the program.

Malta expressed disappointment that despite the ECJ confirming “the principle of national competence” regarding citizenship matters, the court “ignored the Advocate General’s recommendation that there was no case against Malta and instead delved into other aspects.” This references Advocate General Anthony Michael Collins’ opinion, which recommended dismissing the Commission’s action.

The statement highlighted the economic benefits Malta received from the program, noting that “since its inception in 2015, this legislative framework has directly generated over €1.4 billion in revenue for Malta.” The government detailed how these funds supported numerous initiatives nationwide.

In healthcare, Malta invested €10 million to strengthen health centers across the country and several million euros in new equipment at Saint Vincent de Paul and the cardiology department at Mater Dei Hospital.

The statement outlined strategic investments in sports, including €5 million for athletes participating in the Games of the Small States of Europe, which helped Malta win the games for the first time in history in 2023. The government allocated over €13 million for the construction of a car racing track and reached a €9 million agreement with the Malta Football Association for a new technical center, which is nearly complete.

According to the government, the program generated “€339 million from property purchases, €158 million from property rentals, and €236 million were invested in bond acquisitions.”

The statement also mentioned investments in greening projects and restoration initiatives to safeguard national heritage. Applicants contributed “over €10 million in direct philanthropic donations to voluntary organisations across the country.”

The government pointed out that “Malta was not the only Member State operating similar frameworks” and called for “national unity in the steps that must now follow this judgment.” The statement urged everyone to “rise above partisanship in favor of the national interest,” while criticizing opposition parties for attempting “to cause maximum damage” and “to undermine our country’s framework, even during the period in which the Maltese Government was defending the national interest.”

The ECJ ruled yesterday that Malta’s program established “a transactional naturalization procedure in exchange for predetermined payments or investments” that “amounts to the commercialization of the grant of the nationality of a member state, and by extension that of Union citizenship.”

The government did not explicitly state whether it would close or substantially modify its citizenship program. The statement focused primarily on ensuring existing investors that any changes will not apply retroactively, while leaving open the question of what specific steps Malta would take to comply with the court’s ruling.