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European Union

CJEU: Commission v Malta—Investor citizenship schemes breach EU law; Union nationality cannot be granted for payment; genuine link and actual residence required.

Published on: 02 June 2025

Published by a LexisNexis EU Law expert
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Article summary

European Commission v Republic of Malta ECLI:EU:C:2025:283

What are the practical implications of this case?

The judgment curbs Member States’ latitude in conferring nationality where this entails EU citizenship, and prohibits nationality—and thus EU citizenship—being awarded in return for fixed payments or investments. The court confirmed EU citizenship as a core status that demands a real connection between the applicant and the Member State. Granting nationality on the basis of finance alone would erode the substance of Union citizenship and violate the duty of sincere cooperation (Article 4(3) TEU). The ruling bolsters the Commission’s supervisory function, making clear it can contest naturalisation arrangements that impinge on EU citizenship rights. It underscores the court’s resolve to safeguard the integrity of EU membership and citizenship. Other Member States operating investor programmes to draw in foreign capital must rethink or scrap such citizenship offers, ensuring they are not commodifying nationality and thereby EU citizenship. The case also underscores the obligation to embed substantive integration measures in naturalisation routes, such as genuine residence, rather than elevating payment or investment criteria.

What was the background?

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