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The European Commission has said it will file a legal challenge against Malta for its golden passport programme.
The referral of the case to the EU Court of Justice comes after years of wrangling with Malta about tweaks to the scheme.
The passport allows wealthy foreigners to buy citizenship in exchange for an investment of about 1 million euros.
Brussels believes the scheme is in breach of EU law because citizenship is granted without any real obligation for the beneficiaries to live in the country.
