Montenegro expands ‘Golden Passport’ program despite EU criticism

[ad_1]

Session of the Montenegrin government in Podgorica. Photo: Government of Montenegro

Montenegro’s government on Thursday extended its economic citizenship program until December 2022, despite warnings from the European Commission and civic organizations that it could hamper the country’s progress towards EU membership. The government said the program now has more stringent conditions for obtaining economic citizenship.

“During the following month, all investors who have already applied for citizenship must submit to the government a bank guarantee – in the amount of 50 percent of the investments prescribed by the program. All new candidates must pay 100,000 euros to the state budget and an additional 100,000 euros for regional development, ”the government said in a statement.

In 2010, the former government of Milo Djukanovic launched three “economic citizenship” programs, initially selling passports to “renowned businessmen of credible reputation” if they invest at least half a million euros.

The most recent program for foreign investors was launched in January 2019, when the government offered passports to investors who have invested at least 250,000 euros in the underdeveloped regions of the north of the country or 450,000 euros in the regions. more developed in the center and the south.

According to government data, 108 foreign citizens, mostly from Russia and China, have so far obtained Montenegrin passports by purchasing apartments in condominiums in coastal and mountain towns or by donating money to underdeveloped areas.

On March 31, the new government that came to power after the electoral defeat of Djukanovic’s Democratic Socialist Party DPS announced that the economic citizenship program would end by the end of 2021 as it could slow Montenegro’s accession to the European Union.

But on December 30, Economic Development Minister Jako Milatovic said the economic citizenship program was helping the country’s development.

“This will make Montenegro a regional leader in allocating money for innovation. By developing tourism, we strongly support the development of innovation – as the foundation for accelerated economic development, ”Milatovic said on Twitter.

As media reported that Home Secretary Sergej Sekulovic and Foreign Minister Djordje Radulovic voted against extending the program, civic organizations warned that the move could endanger the path of the country’s EU.

“The European institutions are not in favor of such programs to obtain citizenship and attract investment, due to the impact they can have on the financial integrity of Member States and candidate countries,” said the Center for civic freedom, CEGAS, an NGO, in a press release.

The sale of citizenships to foreign investors was also criticized by the European Commission, which feared that it could be used for the purposes of tax evasion, money laundering or evading prosecution in other jurisdictions. This year’s progress report from the European Commission said Montenegro should indeed phase out this investor citizenship program.

He is also trying to get Malta and Cyprus to end their own ‘golden passport’ programs. Around 19 other EU states run similar programs that offer permanent residence rights, but no passports, to investors.

[ad_2]