Latest / IMI Podcasts / “Every Application Will Be Different” Experts Analyze Malta’s Transition to Citizenship by Merit

Transcript

“Every Application Will Be Different” Experts Analyze Malta’s Transition to Citizenship by Merit · IMI Podcasts

• 0:00
  SPEAKER_00: Malta terminated its Maltese exceptional investor naturalization, also known as MEIN, policy following the European Court of Justice ruling.
• 0:10
  SPEAKER_00: Home Affairs Minister Byron Camillari said the government will remove all commercial elements from the citizenship process while broadening eligibility criteria for merit-based naturalization.
• 0:21
  SPEAKER_00: The European Court of Justice's April ruling determined that Malta's program violated EU law by creating, quote, a transactional naturalization procedure in exchange for predetermined payments, end quote.
• 0:34
  SPEAKER_00: The court ruled that such arrangements commercialized EU citizenship without establishing genuine connections between applicants and the member state.
• 0:43
  SPEAKER_00: Eric Major, CEO and chairman of Latitude, believes Malta's position is now far more defensible against future EU scrutiny.
• 0:53
  SPEAKER_00: Quote, I don't see how it could challenge it, frankly.
• 0:57
  SPEAKER_00: End quote, Major explains, pointing to the structured evaluation process that will involve a dedicated board assessing each applicant's skills, background, and potential contribution to Malta.
• 1:09
  SPEAKER_00: The new framework requires that the board consult with relevant sectoral authorities and conduct interviews as part of the assessment.
• 1:17
  SPEAKER_00: Concurrently, Community Malta Agency will carry out comprehensive due diligence before submitting recommendations to the minister.
• 1:24
  SPEAKER_00: Major emphasizes that while the minister retains discretion, quote, that discretion is expected to operate under the above rigorous framework, end quote, he argues the new approach means it's not selling citizenship, it's recognizing meaningful individual contributions to the national interest, and that every application will be different.
• 1:47
  SPEAKER_00: Christopher Willis, managing partner for America's and Caribbean at latitude, emphasizes that there is no fixed price tag for Maltese citizenship under the new merit-based framework.
• 2:00
  SPEAKER_00: Willis explains that the quote process shall require a comprehensive proposal outlining how the applicant's skills or contributions align with Malta's national interest.
• 2:10
  SPEAKER_00: Applications undergo rigorous due diligence, are independently evaluated by an expert board, and ultimately decided by the minister.
• 2:20
  SPEAKER_00: The expanded framework explicitly recognizes job creation as grounds for exceptional contribution while adding philanthropists and technologists to the eligibility criteria.
• 2:31
  SPEAKER_00: Major notes that terms like technologist and philanthropist are, quote, not rigidly defined in legislation and are typically interpreted within the context of the broader purpose of the law, end quote.
• 2:44
  SPEAKER_00: He explains that a technologist refers to an individual who has demonstrated significant expertise, innovation, or leadership in the field of technology, whether through research, entrepreneurship, or practical application.
• 2:59
  SPEAKER_00: A philanthropist is typically understood to be someone who has made substantial and sustained contributions to the public good through charitable giving, social initiatives, or community development.
• 3:10
  SPEAKER_00: James Muscat as a party of Muscat as a party and associates expects the government to establish clear criteria despite the inherent discretionary elements.
• 3:19
  SPEAKER_00: The assessment board's expanded authority to conduct interviews and provide formal recommendations rather than mere opinions suggests a more rigorous evaluation process.
• 3:29
  SPEAKER_00: Serhan Isiver, managing partner at Beyond Global Partners, cautions that clear, objective, and transparent standards are essential to prevent the risk of unofficial commodification.
• 3:41
  SPEAKER_00: He explains that the challenge lies in ensuring philanthropic contributions don't become veiled price tags for citizenship.
• 3:48
  SPEAKER_00: The removal of agents from the application process represents an operational change in how citizenship applications are managed.
• 3:56
  SPEAKER_00: Willis argues that intermediaries are more essential than ever.
• 4:00
  SPEAKER_00: He explains that, quote, the merit-based pathway will not require agents, but applicants will need to appoint lawyers to handle the application and ensure that this is done as professionally as possible, liaise with authorities as well as advise on taxation, acquisition of property, and related issues.
• 4:18
  SPEAKER_00: End quote.
• 4:20
  SPEAKER_00: Willis contrasts the old and new approaches.
• 4:23
  SPEAKER_00: Quote, previously, the rules were fixed, and the biggest challenge was presenting the client's background and source of funds and wealth clearly and understandably.
• 4:33
  SPEAKER_00: That hasn't changed.
• 4:35
  SPEAKER_00: What has changed is that we now also need to help each applicant demonstrate value aligned with national development, requiring customized pathways, strategic partnerships, and a deep understanding of the local context.
• 4:48
  SPEAKER_00: End quote.
• 4:55
  SPEAKER_00: The role may shift from transactional to advisory and support focused.
• 4:59
  SPEAKER_00: His firm plans to continue offering services, stating they have been supporting Maltese citizenship services since its inception and will continue to do so as long as the program aligns with our standards and criteria.
• 5:14
  SPEAKER_00: Malta's approach draws comparisons to Austria's merit-based citizenship framework, though experts identify meaningful differences.
• 5:22
  SPEAKER_00: Willis describes Austria as a gold standard for discretionary, merit-based citizenship rooted in national interest, while positioning Malta's framework as more structured and accessible, with clearer pathways for engagement.
• 5:37
  SPEAKER_00: Asever notes that, quote, Malta's merit-based model focuses on contributions tied to economic or philanthropic merit with probable ministerial discretion, while Austria's program requires exceptional contributions and often direct government approval, including all cabinet members' approval, end quote.
• 5:57
  SPEAKER_00: He argues that Austria's approach may be stricter but less flexible and publicly accessible.
• 6:03
  SPEAKER_00: Industry firms have begun adapting their operations.
• 6:06
  SPEAKER_00: Asever's firm anticipated the shift early and positioned accordingly, having successfully explored alternative pathways aligned with evolving regulations.
• 6:16
  SPEAKER_00: Muscat Azapardi's firm is adjusting by promoting alternative programs while awaiting clarity on the new framework.
• 6:23
  SPEAKER_00: Quote, we are promoting the newly updated permanent residence program, and we are waiting for further guidance on citizenship by merit, end quote, he explains.
• 6:34
  SPEAKER_00: The experts argue that the market remains viable despite eliminating transactional elements.
• 6:40
  SPEAKER_00: Major emphasizes that the new system shifts away from commodification.
• 6:44
  SPEAKER_00: Quote, the new rules in Malta make it clear it's not enough to donate money or invest once and walk away.
• 6:52
  SPEAKER_00: What matters is the substance of what you bring to Malta, your profile, your ideas, your work, your commitment, end quote.
• 7:00
  SPEAKER_00: He argues the framework is designed to reward people who genuinely want to be part of Malta's story.
• 7:06
  SPEAKER_00: Muscat Azopardi agrees that single financial contributions won't suffice.
• 7:12
  SPEAKER_00: Quote, I very much doubt that a single monetary donation will qualify the applicant for Maltese citizenship.
• 7:19
  SPEAKER_00: We cannot offer a transactional path to citizenship, end quote, he affirms.
• 7:24
  SPEAKER_00: Malta's new approach raises questions about implementation standards and future compliance.
• 7:29
  SPEAKER_00: Asafer cautions that clear, objective, and transparent standards are essential to prevent the risk of unofficial commodification, while the challenge lies in ensuring philanthropic contributions don't become veiled price tags for citizenship.
• 7:43
  SPEAKER_00: Muscat as a party expects the government to establish clear criteria despite the inherent discretionary elements, while other experts await official guidance on definitions and evaluation standards.
• 7:55
  SPEAKER_00: Muscat as a party believes the changes align with European Commission positions, since, quote, citizenship by merit does not have a transactional nature, and applicants definitely need to have strong and genuine links to Malta in order to apply.
• 8:10
  SPEAKER_00: End quote.
• 8:11
  SPEAKER_00: May 11th, 2025.
• 8:14
  SPEAKER_00: Eric Major discusses what a genuine link could be within Malta's now-defunct CBI framework.
• 8:20
  SPEAKER_00: However, Isiver notes the possibility of future challenges, warning that the legislative shift could be challenged again by the European Commission, since the new proposal may also be viewed as inconsistent with EU requirements for genuine links, clear objective standards in granting citizenship, and preventing the commodification of passports.
• 8:41
  SPEAKER_00: How the implementation unfolds could influence whether Malta balances ministerial discretion with EU compliance requirements.
• 8:48
  SPEAKER_00: As Isiver emphasizes, transparency and clear criteria linking contributions to public benefit, along with independent oversight mechanisms and regular audits, will be essential to demonstrate that philanthropic acts are substantial and meaningful rather than performative.
• 9:06
  SPEAKER_00: This episode first appeared as an article by Ahmad Abbas on imidaily.com.
• 9:13
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• 9:19
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