The recent meeting between EU and Caribbean officials in Dominica brought to light a stark disparity in the EU's perception of citizenship by investment (CBI). The EU's proposal to significantly raise the minimum investment thresholds for Caribbean Citizenship by Investment Programs (CIPs) raises concerns about the EU's understanding and approach to CBI.
The suggestion that increasing the minimum investment would enhance the program's integrity is both illogical and presumptuous. Raising the financial bar does not fortify due diligence processes; it merely narrows the applicant pool without addressing the core security issues. Criminal applicants are already filtered out through rigorous screening, making the proposed measure redundant.
Moreover, the EU's assertion that higher prices would sustain revenues despite lower application volumes overlooks the competitive landscape of CIPs. The Caribbean programs face global competition, and exorbitant fees may drive potential investors towards more affordable alternatives. Each market has its dynamics, and the Caribbean has successfully found a global balance that the EU's proposal threatens to disrupt.
Raising the minimum investment would alienate legitimate applicants without deterring those with dubious intentions, as ill-gotten funds may not be affected by increased costs. The EU's focus on this measure prompts speculation about an agenda to render CIPs undesirable altogether, disregarding their role in attracting foreign direct investment (FDI).
If the EU genuinely cares about security and due diligence, collaborative efforts with Caribbean CIPs would be more constructive than arbitrary price hikes. The EU possesses advanced investigative resources and could contribute to enhancing due diligence processes. A transparent and cooperative approach, rather than veiled threats, would be more effective in addressing any concerns.
Instead of suggesting counterproductive measures, the EU could have explored avenues such as requesting improved access to applicant backgrounds and rejected cases. Open communication and information sharing, especially with the upcoming ETIAS system, could ensure the EU's involvement in maintaining CBI integrity.
In essence, the EU's insistence on fixing a system that isn't broken by implementing ineffective measures is perplexing. Collaborative solutions exist, and the Caribbean is willing to engage. It is regrettable that the EU Commission doesn't adopt a more proactive and logical stance in addressing shared concerns.
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