by Monnet Matters Just a week after the news about the European Union’s fiscal paradise hit the front pages of newspapers, another scandal has now erupted. This one shows us just how much injustice and corruption there is at home. The scandal concerns the so-called “golden visas” in Portugal. Not only did the scandal rock the government and damage the ruling PSD (Democratic Social) party’s reputation, it also forced a top government minister to resign. The “golden visa” system is not a Portuguese invention. It’s just that the first scandal related to this questionable form of immigration occurred in Portugal. The “golden visas” are actually five-year-duration Schengen visas (residence permits) that are issued to non-EU nationals who invest in property. It’s a system that is being implemented in several EU member states, especially those that are in close contact with third countries and those struggling to raise revenue to solve some serious financial problems. For example, a third-country (non-EU) national who purchases a luxury apartment or villa – paying the minimum quota established by each particular state – will almost automatically obtain a visa that is valid for five years in all the Schengen states. There is no mention of any kind of control on the origin of the money this person used to make the investment. The only requirement is that the foreign investor is not wanted by Interpol. This visa system existed in some countries even before they joined the EU. Cyprus is just one example where this special visa allowed many Russians, Serbs, Lebanese and Israelis to secure a five-year residence permit. Similar “golden visas” have also been issued by Latvia to rich citizens from the former Soviet states who invested in properties in Riga. Greece, amidst the economic crisis and the implementation of a severe austerity programme required by the troika (the International Monetary Fund, the European Commission and the European Central Bank), also established a similar system offering visas to foreigners spending more than €250,000 to purchase property in the country. But Portugal was perhaps the most successful in this “business”. Not only did it require foreigners to make a bigger investment (€500,000) in exchange for a “golden visa”, but it also targeted the affluent society of its former colony, Angola. Angola is among the most corrupt countries in the world. The presidential family and other dignitaries of the regime made incredible fortunes, while the majority of the population lives in poverty. Portugal, however, didn’t seem to mind. Portugal didn’t even apply any controls as regards the origin of the wealth because it was quite obvious the Angolan investors were seeking to launder their money. Portugal was only thinking about making a profit. After the system was introduced, Lisbon transformed into a colony of nouveau riche from Angola and maybe some other African states. So did Cascais, a tourist town which is practically an extension of Lisbon. But the system had its first political victim. Portugal’s interior minister, Miguel Macedo, was forced to resign after many high-ranking officials were accused of playing a role in the scandal concerning the ‘offer’ of the “golden visas”. On the one hand, there are thousands of third country nationals who dream about making a tiny investment in an EU country or simply to have a chance to move to the EU in hopes of finding a job and working hard. On the other hand, there are people with ties to organised crime who can do this by laundering their black money. This is a great injustice! It is an injustice for EU citizens. Since every citizen has to declare his income and pay taxes, sometimes really high taxes, it is unfair that some who have never paid a penny in taxes can come and enjoy the same privileges. But it is also a question of public security. There is not a single control in place as regards the origin of the money being used to make the investment in exchange for a “golden visa” and there is an official indifference to the type of businesses these so-called investors will start once in Europe. It is something quite different to grant a visa to a member of a foreign company that invests in an EU member state and creates much-needed jobs and generates wealth.
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