The draft legislative initiative on which MEPs will vote says ‘citizenship by investment’ schemes, under which third country nationals can get so-called ‘golden passports’, are objectionable ethically, legally, and economically. They also pose serious security risks while undermining the essence of EU citizenship, and should be banned. According to the draft text, third countries with visa-free access to the EU should also end their ‘golden passports’ schemes. Meanwhile, on 25 February in light of Putin’s attack on Ukraine, the leaders of the European Commission, France, Germany, Italy, the UK, Canada, and the US committed to taking measures to limit the access of wealthy Russians (with ties to the government) to ‘golden passports’. Opening statements Sophie IN 'T VELD (Renew, NL), rapporteur, Didier REYNDERS, European Commissioner for Justice and by Ylva JOHANSSON, European Commissioner for Home Affairs.

statement

Strasbourg

plenary session

IN 'T VELD, Sophia (Renew, NL)

REYNDERS, Didier (BE, EC)

European citizenship (T2)

JOHANSSON, Ylva (SE, EC)

Citizenship and residence by investment schemes: opening statements by Sophie IN 'T VELD (Renew, NL), rapporteur, Didier REYNDERS, European Commissioner for Justice and by Ylva JOHANSSON, European Commissioner for Home Affairs

SOUNDBITE (English), Sophia IN 'T VELD (Renew, NL), rapporteur, Thank you, Madam Chair, colleagues commissioner. When governments are selling passports or visa, what is actually bringing in the cash is not those passports and visa, but it's the little blue and yellow logo on them. These stars of the EU flag, however, are not for sale. They belong to all of us, and governments are essentially selling what is not theirs to sell.

SOUNDBITE (English), Sophia IN 'T VELD (Renew, NL), rapporteur, Golden passports and golden visa schemes are not about attracting any meaningful, legitimate investment in the real economy of Europe. They are designed for shady business, shady money and shady characters. Now, already in 2014, colleagues this house called for a ban on golden passports. Then, in 2017, Daphne Caruana Galizia was murdered, amongst other things, because she exposed the corruption riddled trade in passports.

SOUNDBITE (English), Sophia IN 'T VELD (Renew, NL), rapporteur, Today, the war in Ukraine puts the spotlight on this problem. Russians are the largest group of third country nationals that have obtained golden passports and golden visas in the EU, many of them oligarchs with links to Putin's Kremlin. They escape sanctions merely by waving their nice EU passports. It must end.

SOUNDBITE (English), Sophia IN 'T VELD (Renew, NL), rapporteur, A large majority in parliament sends a very clear message to you, Mr Commissioner, a message that cannot be ignored. The Commission has to put legislative proposals on the table before the end of the year. Now is not the time to First wait for the blessing of the member states to ban these schemes, as it is actually those same member states that exploit those schemes. So now is the time for the Commission to be independent in the service of Europe and its security.

SOUNDBITE (English), Sophia IN 'T VELD (Renew, NL), rapporteur, President von der Leyen, incidentally, promised us to consider legislative initiative reports by Parliament as if we have the full right of initiative. So today would be a very good day to honour that promise. Parliament has done its homework. We've put on the table a complete and detailed set of proposals. Now, let the national governments explain why they still think it's a good idea for Russian oligarchs to get EU citizenship or residency rights.

SOUNDBITE (English), Sophia IN 'T VELD (Renew, NL), rapporteur, First, we want to phase out golden passports. No more sale of citizenship. Second We call for very strict regulation of the golden visa to the point that they will lose their attractiveness for careless opportunists. Background checks shall be tightened. Intermediary shall be strictly regulated and a requirement of physical presence shall be strictly enforced.

SOUNDBITE (English), Sophia IN 'T VELD (Renew, NL), rapporteur, We also call for rules governing the investment itself. It should not be enough to just buy a house or villa. The investment must be in the real economy and in line with the climate and social objectives of the union. And if countries monetise their EU membership in this way, then it's only reasonable that they share that profit with their fellow Europeans in the form of a levy. The proceeds of which will be an own resource for the EU budget.

SOUNDBITE (English), Sophia IN 'T VELD (Renew, NL), rapporteur, And finally, third countries often mini states statelets who benefit from visa free travel in the European Union should be banned from issuing golden passports as they have become the new route into the EU for undesirable characters.

SOUNDBITE (English), Sophia IN 'T VELD (Renew, NL), rapporteur, Commissioners, we are looking forward to your proposals. Consider this as support for a new initiative and independence of the commission. And finally, I would like to thank all my shadow rapporteurs because this report is truly the fruit of a collective effort. So thank you all very much.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, Thank you, President. Members of the House. Let me, first of all, thanks to the rapporteur and the Libe committee, as well as all those who have contributed to this important legislative report. The report dea.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, Ls with particularly important issues when it comes to European values, those of solidarity between member states and security risks in the Union. These are fundamentally important, given recent political developments with which you will be familiar and particularly the Russian aggression on Ukraine. Let me underline what the President of the Commission already said in her State of the Union address in 2020. European values are not for sale.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, Selling citizenship through what's sometimes called golden passports is a serious risk, as the Commission has confirmed and a number of occasions. It poses a security risk, a corruption risk and a money laundering risk, as well as a tax evasion risk. The Commission shares the European Parliament's concerns and aims also to take measures to abolish citizenship by investment schemes in all member states.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, And we wish to do that as quickly as possible. Systems in some member states make it possible for rich investors and sometimes their family members to obtain passports in exchange for a large amount of money or significant investment. However, this is often done with no real connexion to the member state in question or real presence on the ground in that member state.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, This has ramifications for all EU member states and the EU as a whole, and investment who can buy citizenship in a member state can use it to freely circulate around all of the member states of the EU. They can engage in economic activity and indeed participate in the democratic processes in those countries, for example, by participating in local or European elections.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, The Commission cannot accept this situation. Our position is very clear. The member states in question should abolish their citizenship by investment schemes because these schemes impinge on Union rights, and I reminded the ministers of justice at the last justice Council last Friday of this. The Commission is going to keep this on the political agenda.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, In October 2020 against Malta and Cyprus, with the aim of abolishing the citizenship by investment schemes, I am sure many of you will remember the debate we had in plenary at that time. We consider that the granting by these member states of their nationality and thereby of EU citizenship in exchange for a pre-determined payment or investment and without a genuine link with the member state concerned is not compatible with the principle of sincere cooperation enshrined in Article four of the Treaty of the European Union and with the concept of EU citizenship as defined in Article 20 of the Treaty on the Functioning of the European Union.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, In parallel, the Commission has been in close contact with Bulgaria that also operates a citizenship by investment scheme. I can now report some positive evidence to you. Cyprus has brought its citizenship by investment scheme to an end, and the Bulgarian parliament is currently considering a bill to abolish the country's scheme. The final vote is a question of days.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, The Commission welcomes the recent announcement of the Maltese authorities that they would suspend their citizenship by investment programme for Russian and Belarus Russian citizens. This is a positive first step on their failure to present acceptable context.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Actually, it's even more unacceptable given the current situation that rich Russians and Russians should become EU citizens via a scheme like this and therefore have preferential access to our single market and our financial system. In the joint statement from G7 on the 27th of February on economic measures taken in reaction to the Ukraine crisis, France, Germany, the UK, Canada, the US and the Commission committed to taking measures aimed at reducing or limiting the sale of citizenship.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, To phase out citizenship by investment scheme is fully in line with the commission's priorities. I am grateful that the parliament's report welcomes the infringement procedures we launched. This is the best way to First all citizenship by investment schemes in the member states. This would also naturally lead, for instance, to an end of the activities of the intermediaries involved in the development and promotion of such schemes, which is another request of your report.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Regarding the Parliament request for legislation to phase out citizenship by investment schemes. The legal and political feasibility of such a legislative proposal would need to be carefully assessed, in particular at a time where infringement proceedings are still ongoing.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, ,Let me just conclude with a few words concerning some of the requests contained in the report and referring to citizenship by investment schemes, such as the creation of a new category of own resources based on the investments made through these schemes, I would like to underline that the Commission considers that such a measure would present a risk of legitimising such schemes.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Our position is very clear. These schemes must be completely abolished and should not be legitimised in any way. I thank you for your support, for your action. I would be happy to hear your views during the debate and to continue our fruitful discussion on this important file and to insist that now we have just have to receive a final decision in Malta about the abolition of the complete scheme for all the different people who try to become to be through that way Members of the national authorities, members of the national member states.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, And I want to say that it is very important to us to have a final decision as soon as possible, and we can continue to use all the tools at our disposal to reach this goal. Of course, I will have Madam President all the pleasure to give the floor to my colleague Ylva Johansson wh we will address residency by investment schemes. Thank you very much.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, Madam President. Madam In 'T Velt, Honourable members. 11 days ago, on the 24th of February, we woke to the news of war on the continent of Europe in an unprovoked invasion. Putin is bringing down overwhelming force on a much smaller, sovereign neighbour. On the front page, that day after the invasion, a teacher, her bandaged and bloodied face were a silent condemnation in a silent call to action.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, And we have heard that call. last week, the member states unanimously agreed to welcome all refugees from Putin's aggression by activating the Temporary Protection Directive, and the EU has imposed massive sanctions to say this will not stand and to cripple the Kremlin's ability to wage aggressive war. If you are fleeing Putin's war, you are warmly welcome here. If you are supporting Putin's war of aggression, you are not welcome.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, In the Parliament's resolution last week you spoke out against résidence investment schemes for rich Russians with links to their regime, and President Metsola called last week to close all possible loopholes. As just mentioned by my colleague Didier Reynders, the Commission and members of the G7 committed to limiting sale of golden passports.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, Several EU member states are taking or considering steps to limit access to investment based residence permit for Russians. But this is not only about Russia and not only about this terrible war. EU residents, EU citizenship are amongst our greatest assets, giving access to our union, our area of freedom, security and justice. Treasured around the world and this valuable commodity is sold cheaply.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, You can buy EU residency in some member states for five hundred thousand euro, a lot of money for an ordinary person, but peanuts for organised crime. It's time to act. Rapporteur, Sophie In T Velt, your report on citizenship and residence by investment schemes could not be more timely.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, For many years to Parliament have raised your voice against golden passports and platinum permits, citizens and residents investment schemes, schemes that give the rich and wealthy shortcuts to free movement shortcuts to EU citizenship. And at no time has this question become more acute, more urgent than it is now.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, You can count on the Commission support to address the risks posed by these schemes: risk to security, money laundering, tax evasion and corruption, and we have taken action. Existing EU legislation addresses some of the parliament's concerns. Applicants for residence by investment schemes are checked in EU and international databases, including the Schengen Information System.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, We consistently assess risk risks raised by investor citizenship schemes in third countries. I recently proposed to suspend the visa exemption with Vanuatu on grounds of public policy and security, because other third country nationals can too easily get access to the European Union. This suspension will enter into force on the 3rd of May.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, We exercised constant pressure on all visa free countries running citizenship by investment schemes and with results, several visa free countries have decided to terminate their schemes or have put on hold plans to set up new schemes. And we will do more. You can count on the commission to follow up on your report. Investment residence schemes may never be a shortcut to citizenship.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, That's why I am considering strengthening checks on continuous residence as part of our current revision of the long term residence directive. We must prevent people from using these schemes to falsify their tax residence by ensuring implementation of the Directive on administrative cooperation with infringement procedures if necessary.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, The Anti-Money Laundering Framework helps to reduce the risk. We will look at further measures. You ask for many different measures to eliminate and mitigate risks covering many different aspects. We will analyse all these requests very carefully and, where necessary, propose legislation.

SOUNDBITE (English), Ylva JOHANSSON, European Commissioner for Home Affairs, I will continue to work together with you following up on this report. As a first and important step, very soon, the Commission will present a recommendation to all member states addressing residence permits and citizenship under investor schemes, in particular in the current context. Thank you.