The Maltese government has said that it has taken note of the concerns raised on its passport selling scheme by the European Commission, adding that citizenship is a member state competence.
The statement, published on Tuesday evening, is in reaction to news that the European Commission officially opened infringement proceedings against Malta and Cyprus on their respective passport-selling schemes, saying that the schemes have significant implications on the European Union as a whole.
In Malta’s case, the Individual Investor Programme (IIP) has been closed since August this year after its first phase elapsed.
The Malta Individual Investor Programme Agency will also be closing in the coming weeks. Since its inception, around 1,460 families have been approved and just over 500 not approved.
In its statement, the government noted that new residence regulations which may lead to citizenship are already proposed for the new scheme, and said that they take into consideration the European Commission’s concerns and recommendations.
The government said that through the programme, the National Development and Social Fund invested in social housing, healthcare equipment and upgrading of health centres. The programme has also supported the Maltese economy during the COVID-19 pandemic saving both lives and jobs, the statement read.
“The new regulations will ensure the highest standards in the sector of residence by investment. These regulations will state that individuals can only apply for citizenship after 3 years of residence or by exception through higher investment after 1 year. In this regard, no citizenship application can be submitted before such period”, the government said of the proposed regulations.
“Furthermore, individuals will be allowed to apply for citizenship only after a thorough due diligence assessment has been conducted, whereas those who do not pass such test would not even be allowed to apply for citizenship”, the government said before adding that the new regulations will no longer have a concessionaire, in contrast to the previous programme.
The government said that it will keep on publishing the names of all persons who obtain Maltese Citizenship and will start to also publish the names of all persons deprived of Maltese nationality.
The government reiterated that “citizenship is a member state competence, whereby every European country decides on its own who the individuals who it believes should receive citizenship are.”
There are over 600,000 individuals who become European citizens each year with very minimal screening, the statement pointed out.
The government said that it will formally reply to the letter of formal notice in due course.
“It is the intention of the Government to use all possible legal measures to defend the national interest and sovereignty.”