An IMGW News Report
19:30 CET Update
The court session concluded today with the announcement that the Advocate General’s non-binding opinion is expected on October 3, 2024. Following this, the chamber will deliberate for a period before publishing the final judgment.
This is a developing story. IMGW.News will continue to provide updates to keep readers informed with the latest information.
17:52 CET Update
It’s already been three and a half hours, and the court session is still in full swing, with both sides taking turns to present their cases and facing questions. The date of the next court sitting has not yet been announced. IMGW News will keep you updated with the latest developments.
The first public hearing in the highly anticipated case of the European Commission versus Malta’s Citizenship by Investment (CBI) Programme began today at 14:30 CET in the Grand Chamber of the European Court of Justice in Luxembourg.
The case, numbered C-181/23, focuses on Malta’s Citizenship by Naturalisation for Exceptional Services by Direct Investment programme, which was introduced in 2020 and permits individuals to acquire Maltese citizenship through an investment of approximately €1 million.
The European Commission, which decided to take legal action against Malta in September 2022, argues that the programme violates EU law by granting citizenship without a genuine link between the investor and Malta. The Commission contends that such schemes undermine the essence of Union citizenship and violate the principle of sincere cooperation enshrined in the Treaty on European Union.
Malta remains defiant, asserting that its CBI program does not breach European law. The Maltese government has made several adjustments to the program over the years, notably suspending it for Russian and Belarusian nationals following the invasion of Ukraine. Despite these adjustments, the program remains open to other nationalities. Malta highlights its 2014 amendments to the program, which required genuine links to Malta, including effective residence status and proof of residing in Malta for at least 12 months before naturalisation, to ensure alignment with the spirit of sincere cooperation and mutual understanding.
Critics argue that citizenship is a matter of member states’ sovereign competence and should not be controlled by the EU. Professor Joseph H. H. Weiler, writing on Verfassungsblog, questioned whether Malta or the EU Commission is undermining European values. This case highlights the tension between EU integration and member state sovereignty. Smaller states see CBI programmes as vital economic opportunities and contend that the EU’s uniform approach does not consider their unique economic needs, potentially forcing them to rely on unsustainable international financial assistance.
Today’s hearing, which involves written submissions, is not expected to yield any immediate decisions. The presiding judge is anticipated to announce a date for the next stage in the proceedings. Both parties will continue to present their cases, with the Advocate General’s opinion anticipated by October 2024. A court judgment is expected towards the end of 2024 or early 2025. The outcome could have significant implications for the future of CBI programmes within the EU and the sovereign rights of EU member states regarding citizenship.
This is a developing story. IMGW News will continue to provide updates to keep readers informed with the latest information.