European Commissioner Viviane Reding warned Malta’s sale of citizenships would clash with European treaties and international law. Photo: Matthew Mirabelli

Malta’s sale of citizenships would clash with European treaties and international law, European Commissioner Viviane Reding warned yesterday amid a barrage of criticism for the scheme in the European Parliament.

Addressing the Parliament in Strasbourg, Ms Reding said granting national citizenship in one EU member state would open the door for citizenship – and thus the rights enjoyed by the citizens – of the 27 other EU states.

These rights included residency, freedom of movement, access to the Schengen area and the right to vote in local and European elections.

Member states, she cautioned, must use their prerogative very diligently on such matters and in sincere adherence to genuine cooperation, as laid down in Article 4.3 of the Maastricht Treaty.

They should also weigh the consequences of such decisions, she said.

The Parliament was debating a resolution, largely supported by the major political groups, that expresses concern over Malta’s Individual Investor Programme, under which a Maltese passport will be granted in return for a €650,000 fee and some investment in property and government bonds.

More than 30 MEPs spoke in the lively debate that lasted over an hour and the vast majority questioned the idea of selling citizenship or expressed outright objections to the principle.

Among the descriptions used for the scheme were “unprecedented”, “disgraceful”, “unfair”, a risk to security in the Schengen area and encouraging money laundering.

The two Nationalist MEPs urged Prime Minister Joseph Muscat to amend the scheme while fending off criticism that they were going against Malta’s interest.

Among the arguments put forward by Labour’s four MEPs, who were alone in defending the scheme, was that Malta should not be used as a scapegoat in this controversy – other countries had introduced similar schemes but for some reason no such fuss was made.

Before the debate got under way Ms Reding told reporters she had not been consulted on the scheme, even though the Maltese government had repeatedly insisted they had received assurances on it from Brussels.

In her legal arguments against the scheme, she said it was not consonant with fair competition among member states and the fair handling of affairs which could influence other member states.

Persons obtaining citizenship must be strongly linked with the country and not simply acquire it against cash

International law, she said, stated very clearly that persons obtaining citizenship must be strongly linked with the country and not simply acquire it against cash.

Introducing the scheme would lead to “negative consequences”, she said, although she did not elaborate when asked.

She expressed concern that it would fuel questions about Maltese passports, as it would no longer be clear whether a passport belonged to rich third-country nationals or to native citizens.

This was not the way they wanted to do things in Europe, she said, as “citizenship in Europe is something precious, important and which has to do with rights and obligations” including voting in local and European elections.

Speaking during the debate, Greek Deputy Minister for European Affairs Dimitris Kourkoulas, whose country holds the rotating EU presidency, was careful not to pronounce himself. While saying that the European Commission was not aware of any infringements by Malta, he told the European Parliament that the issue had not yet been debated by the Council.

The resolution, which will be put to the vote today, expresses concern that the scheme will undermine the very concept behind European citizenship and calls for Malta to bring it “in line with European values”.

Citizenship in Europe is something precious

Though it initially received the backing of all four major political groups, a few hours later the European Socialists backtracked and tabled amendments to remove the two clauses that refer specifically to Malta.

Before the debate got underway, the head of the European Socialists, Hannes Swoboda, reiterated his call for a coordinated approach while hitting out at the EPP and accusing it of overreacting in its stand over the scheme.

The Austrian MEP reiterated his objection to singling out Malta in the resolution, arguing that such an approach would be unfair.

Sources close to the Maltese government yesterday said the two Socialist rapporteurs had received a negative reaction from Socialist MEPs straight after signing the resolution.

The Socialists are banking on the Greens to support their proposed amendments but this alone will still not muster enough votes to get them through.

The government said last night it had taken note of all the comments.

It had been made very clear, it said, that to date, citizenship was a matter of national competence and that other countries had their own citizenship, visa and residence schemes.

In its own reaction, the PN said the debate confirmed how mistaken the government was and that it was now persisting in error over the scheme.