What changed between the plenary report and the adopted text

Added:P10_TC1-COD(2024)0128

Removed:A. Background

Added:Position of the European Parliament adopted at first reading on 27 November 2024 with a view to the adoption of Regulation (EU) 2025/… of the European Parliament and of the Council amending Regulation (EU) 2018/1806 as regards Vanuatu

Removed:Regulation (EU) 2018/1806 of the European Parliament and of the Council lists the third countries whose nationals are to be in possession of visas when crossing the external borders of the Member States and those whose nationals are exempt from that requirement for stays of no more than 90 days in any 180-day period. The Republic of Vanuatu is currently listed in Annex II to Regulation (EU) 2018/1806 among the third countries whose nationals are exempt from the requirement to be in possession of a visa when crossing the external borders of the Member States for stays of no more than 90 days in any 180-day period.

Added:(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2025/11.)

Removed:Nationals of the Republic of Vanuatu thus enjoyed visa-free access to the European Union (EU), primarily due to a visa waiver agreement signed in 2015. Initially, the agreement aimed to facilitate travel and strengthen diplomatic and economic ties between Vanuatu and EU Member States, promoting tourism and business, therefore stimulating both economic and cultural exchange. At the time of the agreement, Vanuatu was perceived as a stable and secure nation with a small population, which posed no threat to the EU’s internal security.

Removed:However, the situation changed when Vanuatu introduced its citizenship for investment programs, which allowed foreign investors to obtain Vanuatu citizenship through financial contributions. These programs raised significant concerns within the EU regarding the integrity and security of its borders. The Commission found that the process had serious deficiencies, including a very low rejection rate, lack of physical presence requirements, and insufficient background checks. These issues led to fears that individuals who might pose security risks could exploit Vanuatu nationals’ visa-free access to enter the EU.

Removed:B. Vanuatu’s Citizenship by Investment Programs (CIPs)

Removed:Vanuatu’s investment passport program, officially known as the Citizenship by Investment Programs (CIPs), allows foreign investors to obtain Vanuatu’s citizenship in exchange for a financial contribution to the country’s economy. The minimum investment required is $130,000, which can be made through various options such as a donation to the National Development Fund or investment in government-approved real estate projects.

Removed:One of the main attractions of Vanuatu’s CIP is its speed and simplicity. The entire process can be completed in as little as three months, making it one of the fastest citizenship programs in the world. Additionally, applicants are not required to reside in Vanuatu or even visit the country to obtain citizenship. This convenience, combined with the relatively low investment threshold, has made the program popular among investors seeking a second passport.

Removed:Thankfully, this program has faced significant scrutiny, particularly from the European Commission. Concerns have been raised about the program’s security measures, including the low rejection rate of applicants and the lack of stringent background checks. Some individuals who obtained Vanuatu citizenship through the CIP were found to be on international watch lists, which heightened fears about potential security risks. These issues ultimately led the European Union to suspend Vanuatu’s visa-free access to the Schengen Area, first partially in 2022, then fully as of February 2023 until now.

Removed:C. Position of the Rapporteur

Removed:By now, it is clear that Vanuatu’s citizenship program allows individuals to obtain citizenship in exchange for a financial investment, granting applicants visa-free access to the Schengen Area: Vanuatu has been selling its citizenship and abusing the European Union’s trust.

Removed:One of the primary issues already highlighted is the extremely low rejection rate of applications, which casts doubt on the thoroughness and reliability of the security and due diligence processes. This leniency increases the risk of granting citizenship to individuals who may pose security threats, including those listed in Interpol databases.

Removed:Another critical concern is the absence of physical presence or residence requirements for applicants. This means that Vanuatu is allowing individuals to obtain its citizenship without ever travelling to the country, making it easier for these individuals to bypass traditional immigration controls and scrutiny. Additionally, the short processing periods for applications do not allow sufficient time for comprehensive background checks and security screenings.

Removed:This expedited process further undermines the integrity of the program and increases the risk of granting citizenship to individuals with potentially harmful intentions.

Removed:The program’s lack of systematic information exchange with applicants’ countries of origin or residence exacerbates these security risks. Without proper communication and verification with other nations, it becomes challenging to assess the true background and intentions of applicants. This gap in information sharing can lead to the issuance of passports to individuals from countries that typically require visas to enter the European Union, effectively circumventing the EU’s established visa procedures and security measures.

Removed:Given these significant security deficiencies, it is evident that Vanuatu’s citizenship-by-investment program poses a substantial threat to the EU. The program’s flaws in due diligence, lack of physical presence requirements, and insufficient information exchange create vulnerabilities that can be exploited by individuals with malicious intent. Therefore, it is imperative that the EU cancels Vanuatu’s visa exemption to protect itself and its Member States from potential security risks and to maintain the integrity of its immigration and border control systems. Also, Vanuatu’s Citizenship by Investment (CIP) programs do pose certain risks to the country itself. The CIP programs mostly attract individuals seeking to exploit the system for illegal activities, which can tarnish Vanuatu’s international reputation.

Removed:Vanuatu has shown inadequate cooperation with the European Commission in addressing concerns about its investor citizenship scheme. Despite the EU’s efforts to engage in dialogue and resolve the issues, Vanuatu has failed to make meaningful progress, leading to the full suspension of its visa-free travel agreement with the EU in February 2023.

Removed:Additionally, Vanuatu’s continued issuance of visas to Russian citizens amid the ongoing aggression in Ukraine exacerbates the situation. This practice undermines the EU’s persistent international efforts to isolate Russia diplomatically and economically, raising serious ethical and security concerns. The Rapporteur considers it to be of simple common sense that this could facilitate the movement of individuals who might be involved in or supportive of the aggression, representing a serious threat.

Removed:This is the first time we have removed a third country from the visa-free list. We do not take this decision lightly; it is both proportionate and justified by the inadequate cooperation of the Republic of Vanuatu and the need to protect European borders from a threat of this scale.

Removed:Therefore, understanding the complexity of the issues and having considered all different aspects, the Rapporteur welcomes the proposal from the Commission and supports its speedy adoption in Parliament without amendments.