Citizenship Diversification to Safeguard Rights and Freedoms

In the current geopolitical landscape, investment migration has gained unprecedented traction. The process of acquiring residence or citizenship rights in alternative countries through significant investment is not primarily in pursuit of better tax regimes or luxurious lifestyles. It is a strategic response to global uncertainties, offering a safeguard against political instability, economic downturns, social fragmentation, and even the potential threat of another major war.

A paradigm shift

Traditionally, investment migration was wrongly perceived as a luxury and valuable asset for those from developing nations with weak passports, offering the allure of seamless visa-free travel, and access to world-class education and business opportunities. The paradigm has shifted in recent years with rising geopolitical tensions, polarization and fragmentation afflicting many highly developed countries with the most powerful passports in the world.

The recent announcement by Germany and other European countries, for instance, to prepare for potential wartime scenarios, which would include reinstating mandatory conscription, has underscored a growing sense of urgency among high-net-worth individuals in Europe to secure their families’ safety and futures through alternative citizenship and residence options.

Historically, most European nations have maintained some form of conscription and military service as part of their national defence strategies. While large militias had been present in Europe for centuries, the levée en masse calling on all able-bodied men to defend their country after the French Revolution was pioneering in mobilizing large numbers of ordinary citizens for military service. Recent decades have seen a trend towards professionalized militaries. Yet, with increasing tensions and security concerns, several EU member states are reconsidering their defence strategies, sparking renewed discussions about conscription. The German defence minister's warning that Europe needs to be ready for war before 2030 highlights the urgency of these discussions.

A new era of uncertainty

Germany’s preparation for potential conflict before the end of the decade reflects the broader concerns across Europe about security and stability. This development is not isolated; it resonates with the apprehensions felt by many European nations regarding regional security, particularly in light of the ongoing conflict between Russia and Ukraine. 

The Baltic states — Lithuania, Latvia, and Estonia — as well as Finland, have maintained or reinstated compulsory military service in response to perceived threats from Russia. Lithuania reintroduced conscription in 2015 amid growing concerns over Russian aggression. These measures aim to bolster national defence, with leaders in Estonia and Latvia urging other European countries to prepare for potential conflict, including considering conscription and imposing special defence taxes. This raises significant questions for EU citizens, especially those in member states without current conscription policies.

Such geopolitical tensions are reshaping the priorities of global citizens, pushing them to seek safer havens and diversify their geopolitical risk portfolios. For EU citizens who have never questioned the freedoms afforded by their passports, the threat of conscription is a stark reality check. 

Threats to the EU project

Some countries, such as Finland, require even citizens living abroad to return for military service. This is also true in South Korea and Singapore. Given the current rhetoric from European leaders and the recent expansion of NATO, the prospect of armed conflict with Russia makes this a real possibility for EU citizens too. 

Conscription can disrupt plans for higher education or career development. Parents naturally fear the possibility of their children being drafted into military service, potentially serving on the front lines. Business owners may struggle with workforce shortages as employees are called up for military duty, impacting productivity and profitability.

Beyond individual and economic consequences, the resurgence of conscription in Europe has broader implications for the EU project itself. Long seen as a beacon of peace and cooperation, built on democracy, human rights, and the rule of law, the EU now faces questions about the compatibility of current challenges with these values. 

Compulsory military service could exacerbate divisions within the EU. Some member states might see it as essential for national security, while others view it as outdated and incompatible with a modern, integrated Europe. Such differing perspectives could strain relations within the bloc, further undermining cohesion and solidarity at a time when unity is important.

The EU project brought unprecedented peace to European nations, arguably its greatest achievement. Listening to the current rhetoric from EU parliamentarians and politicians, one might question how much of this legacy remains.

Preparing for a future unknown

As countries such as Germany brace for potential conflicts, the rationale behind citizenship diversification becomes clearer. High-net-worth individuals are not merely seeking alternative passports but are actively preparing contingency plans to ensure their families’ safety and the continuity of their businesses. Investment migration offers a critical, strategic buffer against such uncertainties, a lifeline in times of crisis. 

While the Henley Passport Index and the Henley Passport Power Index highlight the importance of travel freedom and the value of mobility afforded by your passport, in the current context following the Covid-related severe restrictions on travel and the spectre of war, securing personal access rights to a range of different jurisdictions through a portfolio of passports and residence permits represents the most valuable strategic asset you can have.

Investment migration also serves as a hedge against other forms of instability, such as economic crises and pandemics. The Covid-19 pandemic, for instance, has reinforced the importance of having access to high-quality healthcare and the ability to relocate swiftly in times of crisis. Countries offering robust investment migration programs typically boast strong healthcare systems, adding another layer of security for investors.

Optionality to mitigate risk in Europe

The resurgence of conscription in Europe is not inevitable. EU member states must carefully consider the necessity of mandatory military service against its potential costs and consequences. Alternative defence approaches, such as increased investment in professional military forces or enhanced cooperation through organizations such as NATO, will be explored and are most likely better options.

EU institutions must proactively protect the rights and freedoms of all citizens, including those facing conscription. Robust mechanisms to defend individual liberties and ensure equal treatment are essential to preserving the integrity of the European project, but given the recent policy decisions at the European level and in some EU countries, one may rightly have doubts about which direction we are ultimately heading.

While an EU passport has long symbolized freedom and opportunity, the Covid-19 restrictions on personal freedoms, the potential resurgence of conscription, and the current warmongering over the Ukraine crisis highlight the complexities and uncertainties of citizenship. As geopolitical dynamics evolve, families must carefully consider their passport and residence status, weighing the benefits against potential risks. More than ever, optionality in this regard is vital to safeguard individual rights and freedoms.