Updated 1050
Golden passports scheme violates EU law – European Court: The Court of Justice of the European Union has ruled that Malta’s golden passport scheme violates EU law, marking a major blow to the programme which granted citizenship to wealthy foreigners in exchange for large investments. The court stated that EU citizenship cannot be commodified and must involve a genuine link to the granting state. Malta’s scheme, launched in 2014, was deemed incompatible with EU principles of sincere cooperation and mutual trust. The European Commission had long raised concerns about corruption, money laundering, and security risks. Former Prime Minister Joseph Muscat, who introduced the scheme, called the ruling political, while opposition figures welcomed it. The government had defended its due diligence practices but may now face further legal and financial consequences if it fails to comply with the judgment. The Commission may push for penalties if Malta does not dismantle the scheme. (Times of Malta)
16.8% of Maltese population living in or at risk of poverty, 0.2% increase from 2023 – NSO: In 2024, 92,690 people in Malta lived below the at-risk-of-poverty (ARP) line, with an ARP rate of 16.8%, up 0.2% from 2023. The at-risk-of-poverty or social exclusion (AROPE) rate stood at 19.7%, a slight 0.1% drop. Child poverty rose to 24.1%, while women and seniors (65+) also saw higher poverty rates. Regional disparities were notable, with the Northern district having the highest ARP rate (23.0%) and the South Eastern district the lowest (9.5%). Material and social deprivation rates fell to their lowest in five years. The government highlighted these improvements, noting a steady decline in poverty and deprivation rates since 2013, rising average incomes, and credited social investments for these positive trends. (The Malta Independent)
Degiorgio Brothers’ Fair Trial Claim Rejected by Constitutional Court: George and Alfred Degiorgio, convicted of murdering journalist Daphne Caruana Galizia in 2017, have lost a constitutional case claiming they were denied sufficient time to prepare their defence during their jury trial. They had filed the case against the State Advocate, Advocate General, and the victim’s family, arguing their right to a fair hearing was breached. However, the Constitutional Court, led by Chief Judge Mark Chetcuti, found their argument lacked credibility and dismissed the claim. The brothers are serving 40-year prison sentences for their role in the assassination, which sparked international outrage and calls for justice and reform in Malta. (Maltatoday)
Morning Briefing
PM defends Golden Passport Scheme Amid Sanctions Report
Prime Minister Robert Abela has defended Malta’s golden passport programme following a Financial Times report claiming sanctioned Russians bypassed travel bans by acquiring Maltese citizenship. The PM insisted the scheme has “robust” due diligence, noting that most applications were rejected. He stressed that legal procedures exist to revoke citizenship if necessary, though he did not confirm whether any individuals cited by the Financial Times had lost their passports. The report alleged that seven people who later faced US, EU, or Ukrainian sanctions over Russia’s war in Ukraine had previously obtained Maltese citizenship, including businessman Albert Avdolyan in 2015. Abela also appeared to shift blame toward Nationalist politicians, suggesting they would bear responsibility if the European Court orders Malta to shut down the scheme. He warned that organisations such as Puttinu Cares, which benefit from scheme funds, could suffer as a result.
70% of SMEs say Malta is moving in wrong direction
70% of SMEs think that Malta is moving in the wrong direction, with 30% thinking otherwise and indicating that they believe the country is moving in the right direction, the Malta Chamber of SMEs revealed, quoting the SME Barometer Q1 2025. These results indicate a slight drop in this regard compared to previous surveys, as 72% of respondents in Q4 2024 said that the country was moving in the wrong direction, with that percentage having been higher in Q3 2024 at 79%. The Chamber commented that this decrease from previous quarters is a result of concerns spreading to other issues. The SME Barometer, which was conducted in collaboration with MISCO, found that the most pressing challenges they face were shortage of employees, unfair competition, and excessive competition. Other issues raised included delays in line payments, traffic congestion, and rising inflation. (The Malta Independent)
Mayors and Councillors to Receive €1,000 Increase in Annual Allowance
Mayors and councillors will see their annual allowance rise by €1,000, Culture and Local Government Minister Owen Bonnici announced on Monday. The announcement was made during a visit to the North Region offices, where renovation works are currently underway. The Minister said the increase recognises the important work carried out by councillors and the expenses they incur in fulfilling their duties. In 2019, the government had already doubled councillors’ allowances from €1,200 to €2,400 per year. In addition to this allowance, mayors and regional council presidents receive an honorarium, with the amount varying depending on the size of their council. (Maltatoday)