On June 17, 2024, the European Court of Justice heard arguments in the case between Malta and the European Commission regarding Malta's citizenship by investment program. The Commission claims that the program violates EU law by allowing individuals to obtain citizenship based solely on financial contributions and without having a genuine connection to Malta, therefore undermining the principle of sincere cooperation among EU member states.
Malta argues that the granting of citizenship is a matter of national competence and supported by international law and the Treaty on European Union (TEU) which allows each member state to define its own nationality criteria. Moreover, Malta contends that its CBI scheme includes stringent due diligence and security measures to ensure that new citizens do not pose any risks to the national and EU legal framework.
During the hearing, the judges raised several questions for both parties, including whether a genuine link between the applicant and the member state granting citizenship is a new requirement imposed by EU law and whether Article 20 TFEU could be interpreted as opposing nationality granted without a genuine connection.
The judges also questioned the difference between Malta's CBI scheme and historical schemes, such as Spain's naturalization of Sephardic Jews, which do not require physical presence, as well as the difference between granting citizenship for financial contributions and granting it to athletes for future representation.
The Advocate General will deliver his opinion on October 3, 2024, after which the court will issue its judgement.
