In pronouncing judgement in case number C-181/23 on the 29th April 2025, the Court of Justice of the European Union decided that by granting Naturalisation for Exceptional Services by Direct Investment, Malta is in violation of EU Law.
The European Commission had initiated infringement proceedings against Malta in 2020 which then led to the institution of proceedings before the Court of Justice of the European Union in March 2023 arguing that by granting Maltese nationality (and consequently EU citizenship with all the rights attached thereto) via the naturalisation procedure for exceptional services by direct investment, Malta had violated its obligations under EU law.
Following the Opinion of Advocate General Collins in October 2024, there was much anticipation and speculation as to what the final outcome of the proceedings would be.
It is not the intention here to enter into an analysis of the merits and demerits of the arguments brought forward by the European Commission throughout the proceedings, the merits and demerits of the arguments put forward by the Republic of Malta in defending its citizenship programme, the non-binding opinion of European Court’s AG, as well as the merits and demerits of the motivations and considerations that led the European Court of Justice to the conclusions that it has pronounced.
Nevertheless, it is definitely essential to note that in issuing its immediate reaction the Government of Malta clearly stated that it respects the decisions of the Court of Justice of the European Union, whilst confirming that “the legal implications of this judgment are being studied in detail, so that the regulatory framework on citizenship can then be brought in line with the principles outlined in the judgment”.
What the aftermath of this judgement will be remains to be seen in the coming weeks and months. For the time being is a matter of “stay tuned!!”
Dr. Stephan Gauci
Managing Director
