#London #United Kingdom #Henley Partners #Malta Citizenship #European Court

Henley & Partners Responds to Ruling on Malta's Citizenship Program

On April 29, 2025, Henley & Partners publicly expressed its disappointment concerning the recent decision by the European Court of Justice (ECJ) that classified Malta's citizenship program as a breach of European law. The firm critiqued this highly politicized ruling, suggesting it undermines the foundations of investment migration in Europe.

The legal battle began in March 2023, initiated by the European Commission, which contended that Malta's investment citizenship scheme violated the principle of sincere cooperation—a concept vaguely defined in EU legislation. They argued that the program compromised the integrity of EU citizenship. However, Henley & Partners, along with prominent legal experts, contended that the ECJ's reasoning lacks substantive support grounded in community law.

In an interesting juxtaposition, the opinion of the ECJ's Advocate General prior to the final verdict indicated that the Maltese program conformed to EU law. This marked a significant contradiction as the ECJ's subsequent ruling seemed politically motivated, as it diverged from established legal standards. This development has raised alarms about the increasing politicization of EU judicial institutions, posing threats to two core values of the EU: democratic legitimacy and the rule of law.

Dr. Christian H. Kälin, president of Henley & Partners, highlighted that the assertion that investment migration disrupts EU solidarity is not only unfounded but also demonstrates a profound misunderstanding of the socio-economic roles these initiatives support. According to him, Malta's framework exemplifies a responsible national strategy rather than opportunism, echoing the historical relevance of investment migration across Europe and the world.

Kälin emphasized the need for the EU to pivot its focus towards enhancing due diligence and regulatory oversight, aiming to attract beneficial investments and talent essential for Europe’s economic advancement. He argued that rather than dismissing investment migration, there should be a thoughtful discourse on its merits, grounded in factual analysis.

Moreover, he stressed that this judgment should not hinder constructive dialogue regarding the role of investment migration within the European project. He urged a balanced approach that acknowledges national competencies and promotes economic resilience, especially among smaller member states, viewing this as vital to a unified and diverse Europe.

In summary, Henley & Partners, while expressing its dismay over the ECJ ruling, advocates for a reaffirmation of the benefits associated with investment migration programs. They push for a rational debate focused on factual foundations, highlighting the need for strong governance and engagement with diverse migration initiatives within the EU's framework. The statement is a call to honor the socio-economic contributions that these programs offer and to seek balanced solutions that respect both national interests and the broader European context.