An IMGW News Report
The European Court of Justice (ECJ) has delivered a landmark judgment against Maltaโs Citizenship by Investment (CBI) programme, ruling it incompatible with European Union law. The case, brought by the European Commission, found that Maltaโs programme – which grants citizenship in return for predetermined financial investments – constitutes the commercialisation of EU citizenship and breaches both Article 20 of the Treaty on the Functioning of the European Union (TFEU) and Article 4(3) of the Treaty on European Union (TEU).
The ruling underscores the EUโs position that citizenship must reflect a genuine, substantive connection between the individual and the Member State, rather than being reduced to a transactional product. While the decision directly targets Malta, it sends a strong signal to other EU countries operating or considering similar programmes.
The ECJโs verdict may now pave the way for broader regulatory efforts across the EU, urging Member States to revisit their citizenship and naturalisation frameworks to ensure alignment with the core values of the Union.
As the dust settles, the investment migration industry faces heightened scrutiny and the prospect of structural changes that could reshape the future of such programmes across Europe.
