Albania has suspended its Golden Passport Program, which would have granted citizenship to wealthy foreign investors in exchange for buying apartments in the Durres Port. The European Union (EU) has continuously criticized such citizenship-by-investment (CIP) and residency-by-investment programs, calling on Albania to refrain from implementing them.

During the EU-Albania Stabilization and Association Council meeting, Prime Minister Edi Rama confirmed that the Golden Passport Program had been suspended until the EU's position on the matter is clarified. Rama stated that the program was taken from other EU countries that have implemented it successfully, but the EU has criticized these programs as being contrary to its law and potentially posing security and migratory risks.

The European Commission warned Albania that the program would lead to visa-regime suspension, which would be a significant concern for the EU regarding its visa-free agreement with Albania. The Commission has also considered that the program might serve to bypass the EU short-stay visa procedure, allowing persons involved in unlawful activities to benefit from the program.

Rama's announcement came during a joint press conference with Vice President of the European Commission, Josep Borrell, and the European Commissioner for Neighbourhood and Enlargement, Oliver Varhely. Rama acknowledged that there is a case in the European Court, but it would not be brought to the table until the Court's decision on the matter is known. If the Court decides against the program, it would be a closed issue, but if it determines in the government's favour, each country will make its own choice.

The Golden Passport Program is a controversial issue globally, with many countries offering similar programs. However, these programs have faced criticism for allowing wealthy individuals to buy their way into citizenship, which can pose risks to national security and undermine efforts to tackle tax evasion and money laundering.

The EU has previously urged member states to phase out such programs, with the European Parliament calling for the establishment of a common EU-wide approach to CIPs. The Parliament has also emphasized the need for greater transparency, due diligence, and scrutiny of such programs.

Overall, the decision by Albania to suspend its Golden Passport Program reflects the growing concern around CIPs and residency-by-investment programs. While these programs can provide a boost to a country's economy, they also raise significant security and ethical concerns, particularly when individuals involved in unlawful activities are able to benefit from them. The EU's strong stance against these programs suggests that they are unlikely to be a viable option for countries seeking to attract foreign investment in the future.

Albania adjusts to pressure from the EU Commission

In December 2022, the European Union (EU) Commission issued a warning to Albania regarding its investor citizenship scheme, urging the country to abandon the program. The EU Commission's fifth report for 2022 under the visa suspension mechanism section expressed concern that the scheme could potentially be exploited by applicants to bypass the EU short-stay visa procedure, including the evaluation of individual migratory and security risks. The report also raised the possibility of money laundering and financing of terrorism, which could jeopardize the EU's visa-free agreement with Albania.

The EU Commission went as far as to threaten Albania with the suspension of the visa-waiver agreement if the investor citizenship scheme was implemented. The Commission stated that if such schemes were deemed to pose an increased risk to the internal security and public policy of the EU member states, then the visa-free regime may be suspended.

The EU's warning to Albania is not without precedent. In recent years, several EU member states have come under scrutiny for their own citizenship-by-investment programs. These schemes have faced criticism for potentially facilitating money laundering, corruption, and tax evasion.

Albania's investor citizenship scheme, which would have allowed foreign nationals to obtain Albanian citizenship in exchange for investing in the country, has been a topic of discussion for several years. The country's government had argued that the program would help to boost investment and create jobs.

However, the EU Commission's warning has prompted Albania to reconsider its stance on the investor citizenship scheme. In a statement, the Albanian government affirmed its commitment to complying with the EU's demands, stating that it would not move forward with the program. The government also emphasized its dedication to maintaining a strong partnership with the EU and working towards the country's eventual accession to the bloc.

Overall, the EU Commission's warning to Albania highlights the increasing scrutiny that citizenship-by-investment programs are facing globally. While these schemes can offer significant economic benefits, they must be designed and implemented with caution to avoid potential risks to security and the integrity of the EU visa-free regime.

Albania asserts compliance to EU requests 

Albanian Prime Minister, Edi Rama, has confirmed that his government has suspended its golden passport program, pending clarification from the European Union (EU). Rama stated that Albania had taken the decision to suspend the program until the EU had reached a final agreement on the matter. He also noted that the program had been modeled after similar schemes implemented successfully in other EU countries.

The golden passport program was designed to offer foreign nationals citizenship in Albania in exchange for investment in the country. However, the EU Commission had expressed concern that such programs could be exploited by applicants to bypass visa procedures and pose risks to security and the integrity of the EU visa-free regime.

Rama's announcement suggests that Albania is keen to demonstrate its commitment to complying with EU demands and maintaining a strong partnership with the bloc. The decision to suspend the golden passport program could also help to allay concerns among EU member states about the potential risks associated with citizenship-by-investment schemes.

Albania is not alone in facing scrutiny over its investor citizenship program. In recent years, several EU member states have been subject to criticism over their own programs, which have been accused of facilitating money laundering, corruption, and tax evasion.

In light of these concerns, it is increasingly important for countries to design and implement citizenship-by-investment schemes with caution. While such programs can offer significant economic benefits, they must be carefully monitored to avoid any potential risks to security and the integrity of the EU visa-free regime. The suspension of the golden passport program in Albania is a positive step towards achieving this goal.