In a decisive move, the European Parliament has voted 62-1, with two abstentions, to permanently revoke Vanuatu’s visa-free access to the EU’s Schengen Area. This marks a major turning point in EU policy, as it is the first time a third country has been removed from the coveted visa-free travel list.

Parliament Rapporteur Paulo Cunha emphasized the unprecedented nature of the decision, stating, “This is the first time we have removed a third country from the visa-free list.”

Background of the Suspension

The European Commission first imposed a temporary suspension of Vanuatu’s Schengen visa privileges in March 2022. The decision stemmed from concerns related to the risks posed by Vanuatu’s investor citizenship programs, also known as Citizenship by Investment Programs (CIPs). The suspension initially applied to individuals who acquired Vanuatu citizenship after May 2015, when these programs were introduced.

Vanuatu responded by forming a National Task Force to address EU concerns. However, the reforms it proposed were deemed insufficient. The European Parliament’s report pointed to critical issues in the investor citizenship program, including poor due diligence processes, no physical residency requirements, and a lack of information sharing. These weaknesses, according to the report, left the program vulnerable to exploitation by individuals with malicious intent.

Key Security Concerns

The EU flagged several serious security risks tied to Vanuatu’s citizenship program, such as its fast-tracked three-month processing time and limited background checks on applicants. The European Commission viewed these elements as significant threats to the integrity of the Schengen Area.

The report also took aim at Vanuatu’s broader policies, criticizing the country’s continued issuance of visas to Russian citizens during the ongoing conflict in Ukraine. It concluded that this policy undermines the EU’s “ongoing international efforts” amid geopolitical tensions.

Next Steps: Awaiting Final Approval

The European Council must now provide final approval before the measure is implemented. Given the Council’s history of supporting temporary suspensions of Vanuatu’s visa-free privileges, it is highly likely to endorse the permanent revocation. If passed, this will mean that all Vanuatu citizens, regardless of how they obtained their citizenship, must obtain a visa before traveling to the EU’s Schengen Area.

Lessons for Other Nations

The decision to revoke Vanuatu’s visa-free status underscores the EU’s increasing scrutiny of Citizenship by Investment Programs and their implications for security and global cooperation.

Laszlo Kiss, Managing Director of Discus Holdings, highlighted this precedent as a warning for other nations, such as the Solomon Islands, which may be considering investor citizenship schemes. “It’s crucial for these countries to develop robust due diligence processes,” warned Kiss, adding that accepting Russian applicants remains a sensitive and significant issue for the EU.

Conclusion: A Landmark Decision

The EU’s move to revoke Vanuatu’s Schengen visa waiver not only sets a historic precedent but also signals a broader shift toward tightening controls around investor citizenship programs. For countries offering such schemes, this serves as a stark reminder of the importance of aligning policies with international security and diplomatic expectations. The final decision now rests with the European Council, but as things stand, the era of visa-free access appears to be closing for Vanuatu.