Malta, EC reach agreement on citizenship, Reding welcomes breakthrough

Adds clarification on residency requirement

Malta and the European Commission have reached an agreement on the Individual Investor Programme after a series of negotiations carried out today.

The main changes to the citizenship scheme will see the inroduction of a minimum residency requirement of 12 months, kicking off from when the applicant purchases or rents a property, Prime Minister Joseph Muscat said.

Although this does not mean that an applicant has to spend 365 days in Malta before citizenship is granted, Muscat said existent laws already regulated the definition of residency.

Well done to @OwenBonnici @keithaschembri @jonathancardona and Attorney General for successfully leading #Malta team in Brussels -JM — Joseph Muscat (@JosephMuscat_JM) January 29, 2014

Malta has now secured an agreement with the European Commission that, if the government wants, it can issue more than 1,800 applications.

Originally, the government had said the scheme would be capped at 1,800 but the Commission has now agreed that it's up the member state to decide on the numbers.

Muscat said it was made amply clear during the meetings held that "citizenship was a competent matter of the member state".

The EU has also committed itself to see that similar programmes adopted by other member states undergo the necessary amendments.

"We have a political situation where the EU sought a way forward with us, whereas Simon Busuttil chose to act differently. It is clear that Busuttil was not right," Muscat said.

He added that the Commission has also agreed that once an applicant becomes a Maltese citizen, he will enjoy all rights enjoyed by Maltese and EU citizens.

"Revoking their citizenship will be illegal. Revoking their citizenship would land Malta before the EU Court," the Prime Minister said.

Muscat said he now expected the leader of the Opposition to withdraw both the judicial protest against the government and Henley & Partners and the motion tabled in parliament to repeal the legal notice.

"Simon Busuttil wanted to scrap this programme. All that was scrapped were his arguments."

European Commissioner Viviene Reding this evening welcomed the agreement reached with the government on the citizenship scheme. She said in a tweet:

"Glad that thanks to  support from European Parliament, constructive cooperation with the Maltese, we found a solution on the Maltese citizenship issue."

Glad that thanks 2 support from @Europarl_EN &constructive cooperation w/ the Maltese, we found a solution on the Maltese #citizenship issue — Viviane Reding (@VivianeRedingEU) January 29, 2014

In a statement, Commissioner Reding's office said:

"On 29 January 2014, representatives of the European Commission's services and of the Government of Malta met on the issue of the Individual Investor Programme of the Republic of Malta.

The Maltese representatives presented their intentions regarding further amendments to the regulations issued under the Maltese Citizenship Act (L.N.450 of 2013), with a view to clarify that this Programme will confer full rights, responsibilities and a full citizenship status.

The amendments include genuine links to Malta through the introduction of an effective residence status in Malta prior to the possibility to acquire Maltese naturalisation.

No certificate of naturalisation will be issued unless the applicant provides proof that he/she has resided in Malta for a period of at least 12 months immediately preceding the day of issuing of the certificate of naturalisation.

In addition, the Government of Malta informed the Commission's services about its intention to evaluate whether an increase would need to be made to the current capping of main applicants under the Individual Investor Programme.

The Commission's services welcomed the announced amendments concerning the residence requirement – done in good faith and in a spirit of sincere cooperation and both parties express satisfaction about the understanding reached on this issue."