BRUSSELS – The European Commission launched infringements procedures Tuesday against Cyprus and Malta over their “golden passport” programs, in which wealthy people can acquire EU citizenship in exchange for an investment.
The EU's executive said the lucrative schemes are in violation of EU law and undermine the “essence of EU citizenship."
Around 4,000 Cypriot passports have been issued to investors under the program, generating more than 7 billion euros ($8.25 billion).
“The schemes remain in place for the time being, in both member states concerned and could be replaced by similar investment schemes" said EU Commission spokesman Christian Wigand.
Transparency International asked the EU Commission to scrutinize other similar schemes across the bloc, mentioning Portugal and Austria in particular, to determine whether they are legal.