Debate: Citizenship and residence by investment schemes
Date: MONDAY, 7 MARCH 2022
Speaker: Ylva Johansson
Language: EN

On the front page that day after the invasion, Olena Kurilo, a teacher, her bandaged and bloodied face in silent condemnation in a silent call to action. And we have heeded 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. In Parliament’s resolution last week you spoke out against residence investment schemes for rich Russians with links to the 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. Several EU Member States are taking or considering steps to limit access to investment—based residence permits for Russians. But this is not only about Russia and not only about this terrible war. EU residence, EU citizenship are among 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. You can buy EU residency in some Member States for EUR 500 000 – a lot of money for an ordinary person, but peanuts for organised crime. It’s time to act. Madam rapporteur, Sophie in ’t Veld, your report on citizenship and residence by investment schemes could not be more timely. For many years, Parliament has raised its 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. You can count on the Commission’s 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. We consistently assess 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 3 May. We exercise 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. 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. 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. 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.