St. Lucia: The EU wants CBI programmes scrapped across the Caribbean regardless of reforms

Brussels and Washington have increased pressure over citizenship-by-investment (CBI) programmes in Caribbean countries, citing security risks. In response to concerns raised by partners, St. Lucia—according to Deputy Prime Minister Ernest Hilaire—has implemented reforms. However, in his view, the decisive factor was not the content of the schemes, but the European Union’s underlying objective.

Speaking at a press conference in Castries on 13 July, Hilaire—who oversees the CBI portfolio—said both capitals feared that the programmes could be used by people who “may not have the best interests of these countries at heart.” Castries’ response came on two fronts: the country acknowledges its partners’ concerns and is prepared to cooperate to ensure the programmes do not create security threats.

This position was announced just three weeks after the European Commission sent letters to all five Eastern Caribbean states with CBI programmes, requiring them to wind down their schemes by 1 June 2028. Antigua and Barbuda published the letter on 7 July. St. Lucia itself has not publicly released the document.

“The Commission’s tone has changed”

According to Hilaire, St. Lucia has already met part of the EU’s requirements. He pointed to tougher legislation and the introduction of so-called “value metrics,” arguing that the government has made a series of changes to strengthen the programmes.

One of the key requirements, he said, was an institutional mechanism: the European Commission, in his account, wanted a regional body capable of regulating the programmes, conducting oversight, and confirming compliance with all legislative requirements. The five governments signed an agreement to create such an entity in September 2025.

However, at that point, St. Lucia believes the logic behind the demands shifted. “We also understand that within the European Union, the Commission’s tone has changed,” Hilaire said. He cited an approach taken by member states: proposals to transform direct routes to citizenship into a “residency first” model.

To support his point, he mentioned Malta. In Hilaire’s account, the Commission brought a case before the court because Malta had argued that it was entitled to maintain its own programme.

In April 2025, the Court of Justice of the European Union backed the Commission’s position. “So they made the decision that their members cannot have such programmes,” Hilaire summarised.

He then offered an analogy he said hit hardest: St. Lucia produces less than half a percent of the world’s bananas, yet it lost the trade preferences that supported the sector. According to Hilaire, when you travel around the island, “the traces are still visible.”

Dominica’s numbers

The fiscal side of the issue was raised not by the government, but by the opposition. On 13 July, the Dominica Freedom Party (DFP) issued a statement criticising the government’s approach to the CBI programme and demanded clarification on whether Dominica received its own letter from the Commission.

In the statement, the sharpest figure was about what the wind-down could cost any individual country. In Dominica’s 2025/2026 budget, the DFP claims, 56.7% of current revenue is planned to come from CBI. At the same time, current revenue without CBI is estimated at EC$456.2 million (about US$169 million), while current expenditure is EC$679.9 million (about US$252 million).

Removing CBI income would create an annual gap of roughly EC$224 million. The DFP listed the most vulnerable areas: public service salaries, the National Employment Programme, healthcare, road maintenance, and financing for the international airport.

After that, Prime Minister Roosevelt Skerrit publicly defended the programme and said five leaders are ready to meet the Commission in Brussels. The mission was agreed at a Rozo summit on 10 July, where heads of government prepared a joint response that did not mention the 2028 deadline.

“It’s hard to believe there was ever a path to compliance”

Lawyers who examine the same chain of events reach similar conclusions, but through a different lens. Daisy Joseph-Andell, a partner at Joseph Rowe Law, reminded that in 2025 the question everyone was asking sounded like: “what more does the Caribbean region need to do to satisfy international partners?” But from the end of 2026, she says, “this question already seems naïve.”

She listed what has been implemented: due diligence, transparency, the collection of biometric data, regional cooperation, and the creation of a regulator that would be unique in being shared across several sovereign states at once. “The Caribbean has done the work,” she stressed. That is why, in her view, new calls to dismantle the programmes while requirements keep tightening amount to “it’s hard to believe there was ever a path to compliance.”

Joseph-Andell added that CBI cannot be reduced to “travel documents.” The programmes provide value beyond visa-free travel. Yet, he says, ending access “inevitably casts a shadow over programmes that have genuinely and for the long term benefited people.”

Nick Stevens, CEO of NTL Trust, frames the decision in financial terms. After years of meeting Brussels’ conditions, Caribbean leaders are “for the first time realising that they have to choose between keeping visa-free travel to the EU and keeping CBI programmes.” In his view, this calculation “ultimately comes down to money,” and final decisions may differ across countries in the region.

As a contrast, Stevens points to Vanuatu: in the first half of 2026, CBI revenues there reached a record level despite Brussels removing the country’s access to Schengen in December 2024. “On one side of the scale—money. On the other—EU subsidies, trade, tourism, and compensation for slavery,” he notes. Stevens expects the region to pursue “replacing lost CBI income” through EU subsidies, using a “carrot and stick” approach.

Patrick Peters, CEO of ClientReferrals, interprets the deadline as a signal to applicants rather than to governments. “The best time to obtain a second citizenship or residency is before you actually need it,” he says. As he describes it, today’s buyers are keeping options that may be unavailable tomorrow on the same terms.

This urgency is backed by practice: “We’ve seen governments raise investment thresholds, strengthen due diligence, and change programme benefits with little warning,” Peters points out. He believes those who act earlier gain more certainty and better conditions.

What happens next

The next checkpoint is September. The EU has asked for the full exclusion of individuals subject to restrictive measures, as well as enhanced checks for representatives of all nationalities by that deadline. The regional regulator is expected to begin operations in the same month.

Whatever steps the five states take, the outcome will be reflected in the Commission’s next report on the mechanism to suspend visa privileges, scheduled for December. At the same time, Hilaire refused to predict the result, saying that the decision on further action will be taken by heads of government.

If you’re considering investment residency or citizenship by investment options in the Caribbean, it’s crucial to look beyond program terms and track the EU’s evolving stance. The article about Saint Lucia highlights that pressure can grow even after reforms—because the decisive factor is the EU’s overall direction and security concerns. Want to understand which updates truly matter for the long-term stability of these schemes and how to choose a more resilient pathway? Explore https://digital-nomad.gr/en/goldenvisa for guidance on program status and requirements.

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