Cyprus's parliament has definitively terminated its controversial citizenship-by-investment program, bringing an end to a policy that had long been a source of international criticism and domestic political turmoil. This new legislation not only permanently disbands the Cyprus Investment Program (CIP) but also institutes a formal process for thoroughly reviewing past grants of citizenship, potentially revoking passports from individuals who did not meet the program's original criteria.
The CIP had previously offered Cypriot and, consequently, European Union passports to wealthy investors and their families, creating considerable friction with Brussels over several years. The European Commission had initiated legal proceedings against Cyprus in 2020, asserting that the scheme compromised the fundamental integrity of EU citizenship. Domestically, the program became associated with numerous scandals, fueled by allegations of insufficient background checks and political favoritism, which significantly damaged the nation's global reputation.
The recently enacted law addresses this issue through a dual approach. Firstly, it legally prevents the government from ever reviving the investor pathway to citizenship. Secondly, it establishes an independent committee responsible for meticulously re-examining all previously approved applications. Individuals whose citizenship might be revoked will receive official notification and will be afforded a sixty-day period to present an appeal, with all final determinations subsequently published in the Official Gazette. Parliamentary records indicate that approximately 7,329 individuals, including 3,522 primary investors, had acquired citizenship through this scheme.
Discussions during the legislative process highlighted the deep societal divisions the program had engendered. Members of parliament expressed contrasting viewpoints regarding its overall impact. While some acknowledged its contribution to the economy, they simultaneously lamented the irreparable damage inflicted upon democratic principles and national integrity. Conversely, other lawmakers defended the program's past economic benefits, particularly its stimulus to the construction and banking sectors, despite acknowledging the inherent risks of corruption.
In a related development, the legislation also updates the procedures for awarding honorary citizenship. This provision creates a specific mechanism to recognize children of Greek nationals who perished during the 1974 conflict, along with prominent artists and cultural figures who have made substantial contributions to the island. Recommendations for such honorary distinctions will now be processed through the Deputy Ministry of Culture, ensuring a more transparent and merit-based system that is entirely separate from the commercial investment scheme.
The passage of this law represents Cyprus's determined effort to conclude a contentious period and resolve its legal disagreements with the European Commission. However, the broader political repercussions are still unfolding. Significant debates continue regarding accountability for alleged past misconduct and a comprehensive evaluation of the program's ultimate consequences, balancing short-term economic advantages against profound reputational damage. Moreover, the extensive review of thousands of prior naturalizations is anticipated to be a protracted and potentially contentious legal process, ensuring that the legacy of the "golden passport" era will continue to be felt for many years.