About 90% of the 626 MEPs in Strasbourg voted in favour of a resolution urging Malta to stop the programme. The resolution said that an EU passport could not be bought or sold like a commodity.
However, the resolution is not binding, and citizenship schemes are the responsibility of national governments, not the EU.
As reported, the vote took place on Thursday, and followed weeks controversy that began on the island in November, after the Maltese Parliament approved the plan, and quickly spread to other countries within the bloc.
Individual Investor Programme
The Individual Investor Programme (IIP) had been introduced by the Maltese government in a bid to bolster Malta’s public finances, with estimates that it could generate some €30m in its first year. It was expected to appeal to wealthy Russians and Chinese in particular.
It was loosely modeled on existing passports-for-cash programmes in other states. Currently at least five EU states – Spain, Cyprus, Portugal, Latvia, Greece – already have programmes in place that grant residency rights to non-EU nationals in exchange for financial considerations.
The UK also has a scheme, known as the Tier 1 Investor Visa programme, which is aimed at deriving income from wealthy foreigners who are looking to reside in Britain.
Contentious
Malta’s plan is said to be more contentious than some others, however, because it does not require applicants to be a resident of the island.
As envisioned by the Malta citizenship scheme's architects, the Maltese passports would not come cheap. In addition to a €650,000 initial fee, applicants would have to spend a minimum of €350,000 on Maltese property, and €150,000 on government bonds.
'Investment programme'
After the MEPs’ resolution was passed, Joseph Muscat, Malta's prime minister, insisted the scheme was an "investment" programme that would provide funding for social schemes such as healthcare and education, and would improve quality of life for many people.
Muscat said his government would be selective in who it approved for the plan, according to press reports. He declined to say how many applications the government had thus far received.
Meantime, it was reported that the EU could be able to take legal proceedings against Malta, if it continues with the scheme, or that EU member states could set new minimum standards for the allocation of passports, which might include a requirement of residency.
Malta’s opposition Nationalist Party (PN) has called for a debate on the proposed scheme, and has pledged that a future PN government would revoke citizenships awarded under the scheme.
It claimed the island’s credibility and reputation had been damaged beyond repair, and said the citizenship scheme needed wider discussion and consultation.
