The government is tight-lipped about preliminary talks with the European Commission on the future of the cash-for-citizenship programme.

After initially insisting it did not need to consult Brussels over the controversial scheme as it deemed the granting of European passports to be a matter of national competence, the government is now holding fresh discussion to find a way forward.

Times of Malta is informed that talks were held on Thursday in Athens between Justice Parliamentary Secretary Owen Bonnici and the Commission’s Director General for Justice, Francoise Le Bail.

The discussions were held during an informal meeting of the Justice and Home Affairs Council.

Although Commission vice president Viviane Reding was also present for a few hours at the meeting in the Greek capital, she was unable to meet Dr Bonnici on the issue.

During a debate at the European Parliament last week, Ms Reding had tough words on the Maltese scheme, making it clear that the programme is not in sync with European values and warning that the EU executive might start infringement procedures against the island.

A motion urging the Maltese government to bring the scheme in line with European values was approved by more than 90 per cent of MEPs including almost all the members of the Socialist group. The Commission is arguing that, although the granting of citizenship is a national competence, the European Treaty specifies that member states must “act pursuant to the principle of sincere cooperation”.

Pressed yesterday to declare whether the government will suspend the scheme in case the Commission launched a legal challenge, the Prime Minister would not be drawn into any conclusions and said the aim was “to persuade the Commission not to interfere”.

“We think the Commission has no competence over the issue and, just like it did not interfere with Cyprus and Austria on similar schemes, we will see that it shall not interfere in our programme.”

Dr Muscat refused to state what stand he would adopt if Brussels started infringement procedures against Malta, saying he prefers to let the discussions continue.

Both the European Commission and EU member states have already distanced themselves from the scheme, making it clear that they did not have any plans to sell European citizenship.

Asked whether he still believed that Austria had an identical scheme to Malta, Dr Muscat said: “I have no doubt about that.”

Next week, the government is expected to receive a legal questionnaire from the Commission which is seeking clarifications on the scheme.

Dr Muscat said the government had no problem with this and would give the necessary clarifications.

The questionnaire will be used by the legal services of the Commission to determine whether to start a formal infringement procedure.

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