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What power does the supra-national European parliament have regarding the control of Golden Visa/Passport schemes run by many EU member states?

The EU report on the Investor residency and citizenship Schemes urges member states to take safety steps like rigorous checking for money laundering etc.., or things like sharing of the data about the rejected applicants to each of the member states (so that a rejected applicant does not succeed in applying in another state). This is primarily to safeguard the whole of the EU from potential criminals/terrorists.

EU is apparently urging member states (in its report) to take proper measures for a safe Golden Visa scheme and has also decided to form a committee that will itself monitor the issues and take appropriate actions to make these schemes safe. The EU apparently cannot interfere in National legislation of member states to remove these schemes that have the potential of fraud and other security risks. It just directs member states to be careful as a golden visa scheme introduced by national legislation directly affects other member states due to free movement rights.

But can the EU altogether scrap each and every golden visa scheme (currently around 20 member states run such schemes) of all member states? Does the supra-national parliament legally have the sort of power to do a thing like that?

Andrew Rozario
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    I’m voting to close this question because it asks about politics, not the law. – Trish Aug 16 '20 at 20:54
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    @Trish I think I will disagree as this is a question about the legal powers that the EU possess. But you are experienced, so may be I am wrong. – Andrew Rozario Aug 17 '20 at 08:24

1 Answers1

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No, it can't unilaterally scrap such schemes

Immigration is a shared competence between the Union and Member States under Article 4(2)(j) of the Treaty on the Functioning of the European Union. This means that the Union may legislate and adopt legally binding acts. However, it is predicated on a triad: the Commission (proposer of legislation), Parliament (co-decision maker), and the Council of the European Union (co-decision maker). The Parliament would not be able to propose and enact legislation scrapping the schemes by itself.

The matter of proposing legislation would fall to the European Commission under the ordinary legislative procedure. Such a proposal would go before the Parliament and the Council of the European Union for a "co-decision". Either side may amend, accept, or reject the proposal.

While the Parliament may accept any proposed legislation from the Commission, the Council is unlikely to agree. This is because the Council is comprised of government ministers from each Member State. In the matter of immigration, it is likely that the Home Affairs minister of each Member State would meet as the Council to consider the proposed legislation.

Given the obvious conflict of interest for each "golden visa" scheme, it seems unlikely that the Council would agree to curtail or scrap the system given the advantages it provides that Member State, and the need to be "competitive" with other Member States (even though such competition should not really exist, to ensure the harmony of the Union).

Therefore, the Council would likely reject the proposed legislation and assuming the subsequent conciliation committee cannot get both the Parliament and the Council to agree on the matter, the proposal will be abandoned.

Matthew
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  • It seems very likely, though, that such schemes are well on the route to be scrapped. On an official document, the EU has explicitly called all member states to phase out such schemes and until then, they have formed a committee to regulate the schemes. Can EU simply call member states to phase golden visas out? – Andrew Rozario Aug 17 '20 at 08:27
  • Moreover, the EU Commission in its report, stated that the advantages that these schemes provide to the member states do not outweigh the risks it brings like money laundering, fraud, terrorism, tax evasion etc...In this relation, can you give a solid foundation for your belief that the Council is unlikely to agree to scrapping golden visas (given many MEPs and National leaders/Government ministers are actually against it themselves, but not in majority)? The Council members who actually support the schemes could easily be singled out for seconding an obviously improper route to EU citizenship – Andrew Rozario Aug 17 '20 at 17:29
  • Question no. 3 [ :) ]: When all the news websites mention that "EU urges member states to terminate such schemes", who exactly is asking so, the Parliament, the Council, or the Commission? – Andrew Rozario Aug 18 '20 at 07:45
  • The EU Commission can ask but Member States aren't obliged to do anything unless they get a majority voting bloc. 2) I can't give any evidence but it seems self-evident: the involved Member States would have unilaterally scrapped them if they didn't support them, surely? 3) It would be the Commission most of the time, but some news reports mention the European Parliament's view on things too. Both can ask Member States and take their views to the media, etc, but the Commission has more "weight".
    • – Matthew Aug 18 '20 at 09:12
  • +1 I don't have enough reputation to upvote your reply. So according to you, Golden Visa schemes could never be stopped in a political bloc like the EU as it will require the agreement of the Council (co-decision with the Parliament). It can only be regulated strictly but not stopped. Is that right? Don't worry I am not assuming you are providing legal advice or opinion which is 100% correct. Just wanting to know what a person who has studied law thinks about the likely outcome. – Andrew Rozario Aug 18 '20 at 09:32
  • That is correct. The EU is a political institution, after all. In order for changes to be made to immigration policy such as "Golden Visa" schemes, it would require the Council to agree to adopt any legislation proposed by the Commission and backed by the Parliament. That is a political decision left to Member States. – Matthew Aug 18 '20 at 09:42
  • Just on the news! Cyprus has been forced to end its citizenship by investment programme after Al Jazeera exposed the corruption underpinning it. So many high level Cypriot officials have already resigned. European officials are in disbelief after learning how Cyprus illegally sold passports to criminals. Many EU leaders are saying they are preparing actions against Cyprus, and are going to end all programs throughout the EU. Do you want to comment on this? – Andrew Rozario Oct 17 '20 at 12:54
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    That's interesting. Presumably Golden Visa schemas will now be scrapped by the EU because the Commission can enlist the political cooperation of the Council and presumably the Parliament is in favour of it as well. – Matthew Oct 17 '20 at 14:30
  • ".... be scrapped by the EU because the Commission can enlist the political cooperation of the Council..." --- Can you elaborate on this, please? I am interested, but am facing ambiguity in the language. Thank you:) – Andrew Rozario Oct 17 '20 at 14:39
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    The Commission can say "We propose to issue legislation scrapping Golden Visa schemes" and given the current developments re Cyprus, the Council is unlikely to block it (because politically it suits them to be seen to be acting on this "corruption" now). Therefore under the triad model, it is entirely possible that both co-decision makers (Council and Parliament) will agree to pass the legislation and Golden Visa schemes will be outlawed. – Matthew Oct 17 '20 at 14:46
  • Thank you for the elaboration and your time Matthew. Have a nice day:) – Andrew Rozario Oct 17 '20 at 14:48