Latest / IMI Podcasts / ECJ Ruling “Didn’t Say [EU] Countries Can’t Have CBI”

Transcript

ECJ Ruling “Didn’t Say [EU] Countries Can’t Have CBI” · IMI Podcasts

• 0:00
  SPEAKER_00: Last week's European Court of Justice, also known as ECJ, ruling against Malta's exceptional investor naturalization policy, sent shockwaves through the investment migration industry.
• 0:13
  SPEAKER_00: The news broke as IMI Connect Athens was about to launch, where James Musket Azopardi, founder of Musket Azopardi and Associates, and Eric G.
• 0:23
  SPEAKER_00: Major, a seasoned expert and CEO of Latitude Residency and Citizenship, shared their insights on the ruling and its potential implications.
• 0:33
  SPEAKER_00: Azzopardi did not mince words when describing his reaction to the ruling.
• 0:38
  SPEAKER_00: The ruling was unexpected, he said, pointing out that the ECJ went against the Advocate General's earlier recommendation to dismiss the case.
• 0:47
  SPEAKER_00: He argued that the European Court of Justice had very widely stretched the interpretations of Article IV and Article 20 to accommodate a political opposition to citizenship by investment programs, labeling the ruling as politically motivated.
• 1:04
  SPEAKER_00: Azopardi emphasized that, quote, there is no European law that prohibits the giving of citizenship by investment, end quote, nor is there a law that prohibits a program from being transactional.
• 1:17
  SPEAKER_00: The ruling doesn't outright ban citizenship programs, says Azopardi, adding that this leaves room for Malta to adapt.
• 1:25
  SPEAKER_00: Quote, one would expect that the EU will accept a program that is much less transactional and where there are more genuine links required, end quote, he said, hinting at potential amendments to Malta's framework.
• 1:39
  SPEAKER_00: The ECJ's insistence on genuine links remain open to interpretation, as the court did not specifically explain what constitutes as a genuine link, and Malta has announced it's studying the legal implications in order to align with the court order, as the ECJ leaves Malta to its own devices to guess what genuine links really mean.
• 2:00
  SPEAKER_00: Azzoparty also underscored the lack of clarity regarding genuine links, or a non-transactional program under EU law.
• 2:08
  SPEAKER_00: Explaining that, quote, there's no directive, no regulation, no official guidance as to what is acceptable and what is not, end quote.
• 2:19
  SPEAKER_00: Eric G.
• 2:20
  SPEAKER_00: Major also weighed in, describing the ruling as a surprise and very unfortunate.
• 2:26
  SPEAKER_00: Like Azzopardi, he reiterated the industry's expectation that the court would follow the Advocate General's opinion, which was in Malta's favor.
• 2:36
  SPEAKER_00: Major also expects the industry to evolve in response to the decision, predicting a shift toward offering residency by investment options, with a clear pathway to citizenship.
• 2:48
  SPEAKER_00: He explained that future programs must address the genuine link requirement outlined in the ruling to prevent potential disruptions.
• 2:56
  SPEAKER_00: He says it is clear it any future program can't be transactional, and has to have a physical presence and a genuine link to the nation.
• 3:06
  SPEAKER_00: Despite the setback, Major struck an optimistic tone.
• 3:11
  SPEAKER_00: Quote, we'll find a way, end quote, he said confidently, predicting that such challenges will drive innovation within the industry, seeing the ruling as an opportunity for the industry to adapt.
• 3:25
  SPEAKER_00: Quote, future programs will need to comply with EU standards while creating pathways that address concerns about physical presence and integration.
• 3:34
  SPEAKER_00: End quote, he said, adding that such models are likely to gain broader acceptance over time.
• 3:41
  SPEAKER_00: This episode first appeared as an article by Mustafa on IMIDaily.com.
• 3:47
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• 3:54
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