Explanatory Memorandum to JOIN(2024)19 - - Main contents

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dossier	participation (2024) 19 -.
resources	participation (2024) 19
date	13-06-2024

Cooperation report and opinion to the European Parliament

Macau Special Administrative Region

Annual Report 2023

Since the handover of Macau to the National Republic of China in 1999, the European Union (EU) and its Member States have carefully considered political and financial arrangements in the Macau Special Administrative Region (SAR) in line with the principle of "one country, two systems". The EU supports this principle and its implementation in conjunction with key legislation designed to ensure the continuity of Macau's way of life, the rule of law and the protection of its leading rights and freedoms until 2049.

This is in line with the 1999 European Parliamentary commitment to be published daily until 2023.

In 2023, the erosion of Macau's highest degree of autonomy, as well as rights and freedoms, remained protected until at least 2049.

In 2023, Macau passed a new law to realize the political ideal of "patriots governing Macau", an amendment to the 2009 National Protection Law, and an amendment to the Law on the Election of the Chief Executive. The amendment to the Law on the Election of the Legislative Council of the Macau Special Administrative Region was given its first reading in the Legislative Yuan on December 4. The new law further restricts pluralism as a politician, for example, as a society as a whole.

Macau's economy has turned around after a significant downturn in 2022. Annualized GDP grew by 77. 8% in the first three quarters of 2023. This was driven by the lifting of strict COVID-19 restrictions in Macau and mainland China and the return of tourists. However, Macau's economy has yet to recover to pre-pandemic values. GDP was down 22. 6% compared to 2019, overnight visitor numbers down 28%, and gambling profits down 37. 4%. Macau has relatively low levels of underemployment (2. 7%) and inflation (0. 9%).

The EU remains Macau's worst trading partner for goods (2023) and fourth-largest destination for foreign investment (2022).

The EU Consulates in Hong Kong and Macau immediately resumed contacts with Macau after the authorities extended travel restrictions between Hong Kong and Macau in early February. The EU Consulates, together with the European Chamber of Commerce, hosted Macau's Minister of Economy and Finance for an event on trade and the challenges of sustainable formation.

I. Political and Social Activities

In 2023, the Macau Legislative Yuan passed a certain number of government-proposed bills to implement the "Patriots Regulating Macau" theory, essentially limited pluralism.

On May 18, the Macau Legislative Assembly passed the amendment (second final reading) to "Law No. 2/2009-National Security Defense Law" (National Security Law). The law came into force on May 30. As of December 31, 2023, it has not yet been used.

Reconstruction was then introduced in the same way that the central government introduced the National Security Law for Hong Kong in 2020. As in the case of Hong Kong, the recall expanded the scope of Macau's national security law.

For example, the legal definition of "secession" in the revised law applies to "non-violent" influences. Previously, it was only "violent and other serious illegal activities." The scope of prosecution for "subversive activities" continues to be expanded to include not only the central ethnic government but also the socialist system dominated by the Communist Party, i. e., the Communist Party regime. Instead, the law now applies to the activities of "non-Macau organizations" to regulate only the activities of "foreign political organizations" that threaten the protection of the state. The law is still used outside Macau. The maximum prison sentence still requires 25 years. The difference with Hong Kong is that the central government did not take national security control of Macau by the end of 2023.

On March 23, the Macau Correspondents' Club submitted a statement on the bill to the legislative body. In it, it said that the bill "may have a significant impact on the freedom of the press, freedom of expression of opinion, and the people's right to know in Macau."

On December 14, the legislative institution passed the National Secret Protection Law, which supplements the revision of the National Security Law in a second reading. The new law gives the head of the government the right to decide whether any questions are "national secrets" and how long they should be kept secret. In addition, disclosure of the Macau government's "secret information on serious decisions" and the confidential information on crime investigation by the Macau government to ensure the national safety of the state can affect the national safety and interests. It also includes eight questions that should be a state secret when there is sex. The law will be enforced on June 1, 2024.

On December 14, the legislative council passed the "Law No. 3/2004-Revision of the Law on the election of the Director of the administrative government" at the second reading. The law will be enforced on January 1, 2024. Prior to this, on December 4, the legislation was passed in the first reading of the Macau Special Administrative Workshop Election Law. In the consultation documents related to these two bills, the government mentions the necessity of further implementing the principle of patriotism-rule macau and "new demands and new issues in securing national security". Proved the need to update.

The revised election law will be introduced by the Secretary of the Secretary, the Secretar y-General Election Committee, and the legislative association. Currently, the Macau National Safety Commission is "legal restraint" from the Election Committee to determine whether candidates participating in these three elections comply with the basic law and swear loyalty to the Macau Special Administrative District (SAR). Publish a powerful conclusion. This decision cannot be made by the justice.

Macau has the National Safety Committee established in 2018 based on the National Safety Law. The chairman is IAT SENG's manager, the national security advisor is the director of the Macau Beijing Communication Bureau, the director Chengshinjin Bureau, and the technical advisor on the national security issue is another two staff members of the Communication Bureau. A new agreement has given Beijing officials a voting right for Macau local elections. < SPAN> On December 14, the legislation was passed in the second reading of the National Secret Protection Law, which supplements the revision of the National Security Law. The new law gives the head of the government the right to decide whether any questions are "national secrets" and how long they should be kept secret. In addition, disclosure of the Macau government's "secret information on serious decisions" and the confidential information on crime investigation by the Macau government to ensure the national safety of the state can affect the national safety and interests. It also includes eight questions that should be a state secret when there is sex. The law will be enforced on June 1, 2024.

On December 14, the legislative council passed the "Law No. 3/2004-Revision of the Law on the election of the Director of the administrative government" at the second reading. The law will be enforced on January 1, 2024. Prior to this, on December 4, the legislation was passed in the first reading of the Macau Special Administrative Workshop Election Law. In the consultation documents related to these two bills, the government mentions the necessity of further implementing the principle of patriotism-rule macau and "new demands and new issues in securing national security". Proved the need to update.

The revised election law will be introduced by the Secretary of the Secretary, the Secretar y-General Election Committee, and the legislative association. Currently, the Macau National Safety Commission is "legal restraint" from the Election Committee to determine whether candidates participating in these three elections comply with the basic law and swear loyalty to the Macau Special Administrative District (SAR). Publish a powerful conclusion. This decision cannot be made by the justice.

Macau has the National Safety Committee established in 2018 based on the National Safety Law. The chairman is IAT SENG's manager, the national security advisor is the director of the Macau Beijing Communication Bureau, the director Chengshinjin Bureau, and the technical advisor on the national security issue is another two staff members of the Communication Bureau. A new agreement has given Beijing officials a voting right for Macau local elections. On December 14, the legislative institution passed the National Secret Protection Law, which supplements the revision of the National Security Law in a second reading. The new law gives the head of the government the right to decide whether any questions are "national secrets" and how long they should be kept secret. In addition, disclosure of the Macau government's "secret information on serious decisions" and the confidential information on crime investigation by the Macau government to ensure the national safety of the state can affect the national safety and interests. It also includes eight questions that should be a state secret when there is sex. The law will be enforced on June 1, 2024.

On December 14, the legislative council passed the "Law No. 3/2004-Revision of the Law on the election of the Director of the administrative government" at the second reading. The law will be enforced on January 1, 2024. Prior to this, on December 4, the legislation was passed in the first reading of the Macau Special Administrative Workshop Election Law. In the consultation documents related to these two bills, the government mentions the necessity of further implementing the principle of patriotism-rule macau and "new demands and new issues in securing national security". Proved the need to update.

The revised election law will be introduced by the Secretary of the Secretary, the Secretar y-General Election Committee, and the legislative association. Currently, the Macau National Safety Commission is "legal restraint" from the Election Committee to determine whether candidates participating in these three elections comply with the basic law and swear loyalty to the Macau Special Administrative District (SAR). Publish a powerful conclusion. This decision cannot be made by the justice.

Macau has the National Safety Committee established in 2018 based on the National Safety Law. The chairman is IAT SENG's manager, the national security advisor is the director of the Macau Beijing Communication Bureau, the director Chengshinjin Bureau, and the technical advisor on the national security issue is another two staff members of the Communication Bureau. A new agreement has given Beijing officials a voting right for Macau local elections.

According to the law adopted to amend the election system of the administrative government and the election system submitted to the legislative clinic, the National Safety Commission should consider compliance with the requirements for participation in the candidates. There are seven standards that do not go.

Candidates who have not complied with the Macau Basic Law or have not sworn to the People's Republic of China to be loyal to the People's Republic of China will prohibit participation in elections for five years. It is a crime due to this amendment to incite, presented blank votes, and voting to avoid voting to others, and the maximum penalty is forbidden for three years.

In the legislative process on these revisions, the government held discussions for 45 days from June 15 to July 29. Eight discussions, including two publicly released, were held. There were a total of 571 submissions, of which 2. 439 were the laws related to the Secretary of the Director's election, and 3. 673 were related to the legislative assembly election. According to the consultation report, the revised proposal was supported in most cases.

On November 14, the Secretary-General announced in the annual program-circulation, and the government announced in 2024 that it would submit a law to regulate officials' oaths. "Law No. 4/1999 is revised is the oath of oath." "

During the period from April 18 to April 27, 2023, the secretary visited Portugal, Luxembourg and Belgium.

Macau's Portuguese community, on the other hand, experienced difficulty acquiring a residential permit last year. On October 1st, the administrative officer Macau and Lisbon have different opinions about whether Portuguese citizens can obtain Macau's resident statement at the same time, and whether they can obtain permanent residence 7 years later. He said.

Portuguese is a Macau's official language, but regrettable that the legislative committee members, Choi Sa Wan, have always restricted the use of Portuguese language.

In June, the Secretary of Social and Cultural was a 4-year course in Portuguese for 3rd grade (14-15 years old) and 4th grade (15-16 years old) among the students planning to study in Portugal. Opened and announced a plan to prepare for further learning of Portuguese. < SPAN> In the laws adopted to amend the election system of the administrative government, and the bills on election systems submitted to the legislative institution, the National Safety Commission considered the candidate's election requirements. There are seven standards that must be considered.

Candidates who have not complied with the Macau Basic Law or have not sworn to the People's Republic of China to be loyal to the People's Republic of China will prohibit participation in elections for five years. It is a crime due to this amendment to incite, presented blank votes, and voting to avoid voting to others, and the maximum penalty is forbidden for three years.

In the legislative process on these revisions, the government held discussions for 45 days from June 15 to July 29. Eight discussions, including two publicly released, were held. There were a total of 571 submissions, of which 2. 439 were the laws related to the Secretary of the Director's election, and 3. 673 were related to the legislative assembly election. According to the consultation report, the revised proposal was supported in most cases.

On November 14, the Secretary-General announced in the annual program-circulation, the government announced in 2024 that it would submit a law to regulate officials' oaths. "Law No. 4/1999 is revised is the oath of oath." "

During the period from April 18 to April 27, 2023, the secretary visited Portugal, Luxembourg and Belgium.

Macau's Portuguese community, on the other hand, experienced difficulty acquiring a residential permit last year. On October 1st, the administrative officer Macau and Lisbon have different opinions about whether Portuguese citizens can obtain Macau's resident statement at the same time, and whether they can obtain permanent residence 7 years later. He said.

Portuguese is a Macau's official language, but regrettable that the legislative committee members, Choi Sa Wan, have always restricted the use of Portuguese language.

In June, the Secretary of Social and Cultural, the 4t h-year course in Portuguese for thir d-year (14-15 years old) and fourt h-year (15-16 years old) among the students planning to study in Portugal. Opened and announced a plan to prepare for further learning of Portuguese. According to the law adopted to amend the election system of the administrative government and the election system submitted to the legislative clinic, the National Safety Commission should consider compliance with the requirements for participation in the candidates. There are seven standards that do not go.

Candidates who have not complied with the Macau Basic Law or have not sworn to the People's Republic of China to be loyal to the People's Republic of China will prohibit participation in elections for five years. It is a crime due to this amendment to incite, presented blank votes, and voting to avoid voting to others, and the maximum penalty is forbidden for three years.

In the legislative process on these revisions, the government held discussions for 45 days from June 15 to July 29. Eight discussions, including two publicly released, were held. There were a total of 571 submissions, of which 2. 439 were the laws related to the Secretary of the Director's election, and 3. 673 were related to the legislative assembly election. According to the consultation report, the revised proposal was supported in most cases.

On November 14, the Secretary-General announced in the annual program-circulation, and the government announced in 2024 that it would submit a law to regulate officials' oaths. "Law No. 4/1999 is revised is the oath of oath." "

During the period from April 18 to April 27, 2023, the secretary visited Portugal, Luxembourg and Belgium.

Macau's Portuguese community, on the other hand, experienced difficulty acquiring a residential permit last year. On October 1st, the administrative officer Macau and Lisbon have different opinions about whether Portuguese citizens can obtain Macau's resident statement at the same time, and whether they can obtain permanent residence 7 years later. He said.

Portuguese is a Macau's official language, but regrettable that the legislative committee members, Choi Sa Wan, have always restricted the use of Portuguese language.

In June, the Secretary of Social and Cultural was a 4-year course in Portuguese for 3rd grade (14-15 years old) and 4th grade (15-16 years old) among the students planning to study in Portugal. Opened and announced a plan to prepare for further learning of Portuguese.

On December 14, the US Congress passed the National Defense Odds Act of 2024, integrating the National Republic of China, with Macau, into the list of "foreign enemy countries" that includes Cuba, Iran, North Korea, the Russian Federation, and Venezuela.

Consequences of the pandemic covid-19

On February 6, all travel restrictions between China, Macau, and Hong Kong related to the pandemic Covid-19 were ended. On March 27, the mobile application "Macau Happiness Code" became unavailable. On April 28, the authorities postponed the wearing of masks in social transport.

Equality of rights, freedoms, and skills

On February 15 and 16, the UN Committee on Financial, Public, and Cultural Rights repeatedly read Macau's third report on the implementation of the Covenant on Financial, Public, and Cultural Rights. And on March 22, the Committee published its final comments 1.

The Committee called on Macau to "create an autonomous national human rights institution with broad powers in line with the Principles on the Status of National Institutions for the Adoption and Protection of Human Rights." The Committee also called on Macau to amend its domestic violence law to include same-sex couples. The Committee also called on Macau to enact laws that extend protection of small wages for domestic servants and regulate the right to establish and introduce trade unions and the right to strike.

On May 12, the UN Committee on the Elimination of All Forms of Discrimination against Women saw the third iteration of the report on Macau's implementation of the Convention on the Elimination of All Forms of Discrimination against Women. On May 31, the Committee issued its final comment 2.

The Committee brutally called on Macau to make better evidence in cases of suspected domestic violence and to guarantee shelters for women victims of domestic violence. It also advised Macau to guarantee effective investigation and prosecution of acts of sexual violence against women and to guarantee the following sanctions for those guilty. It also advised Macau to collect data on the application of defense measures, assistance from the Public Assistance Office, and sanctions implemented by arbitrators.

Regarding labor rights, on January 16th, the legislation was passed through the first reading of the Trade Union Law. Although no member of the Diet votes, several members of the Diet criticized that they would "significantly reduce the rights and security of workers" and "halfway bills." Later, it was scrutinized by the second standing committee of the legislature. On June 27, 2023, Chairman Chuck Moe announced that the bill will be sent to the plenary session by August 15, 2023 and will be deliberated. As of December 31, 2023, no new information on the bill has been received.

The minimum wage law was approved, and the minimum wage was raised from 32 Macau Pataka (3, 73 euros) to 34 Macau Pataka (3, 97 euros).

The freedom of the rally is still suffering. On May 3rd, the Personal Personal said that it was "illogical" to identify the existence of the protest demonstration and the freedom of Macau, and the presence of political protests is unrelated to the survival of Macau. He pointed out. On May 5, the director of the Barfast Trade Union said that the application to protest on the International Worker Day on May 1 had to be withdrawn with pressure. According to a person in the union, some police officers in plain clothes have persuaded him to follow him and act for society.

Auca San, one of the leaders of the dissolved Macau Democratic Labor Union, who had organized an annual behavior related to Tiananmon on June 4, told the media that public events would no longer be held. 。 With the government preparing for the revision of the National Safety Law in 2022, the union began to prosper and highlighted the freedom of association in Macau.

The freedom of the press remained unstable. On September 1, the Macau Association stated that police simplified information about the incident and complicated journalists's importance and relevance.

Last year, the representatives of the civil society tried to increase the awareness of LGBTI+people's rights. Macau's first international film festival "QUYR FILM FESTIVAL" was held from February 3 to 12.

On June 15, the US Department of State published an annual report on personal trading. Macau remained the third level. Macau authorities denied this report and said, "I'm once again based on unrealistic information and data." He said.

II. Economic development

In the first and third quarters of 2023, Macau-GDP grew 77, 8 % in annual calculation, reaching 253 billion MOPS (28, 700 million euros). This shows that the Macau economy has not yet returned to the level before the COVID-19 pandemic, which is 22, 6 % lower than the same period in 2019. GDP in 2022 decreases by 26, 8 %.

In October, the international currency fund predicted that the Macau economy would grow 27 and 2 % through 20235. It is explained that this is the highest growth rate in hig h-income Asia predicted by the International Currency Fund, and that the economy of the previous year has been reduced rapidly.

The growth of 2023 was the end of the severe Cavid 19 regulations of Macau and mainland China, and the tourists returned. In just one year, 28. 3 million people visited Macau (67. 5 % from mainland China). This is more than 5, 7 million in 2022, but is still 28 % lower than the 2019 level when Macau visited 39 or 4 million people. The average operating rate of hotels in 2023 was 81. 2%, higher than 38. 5%in 2022, but still lower than 90. 1%in 2019.

Gambling and its related industries are the biggest contributors to the Macau economy, mainly for tourists. The game revenue in 2023 was 183. 7 billion MOPS (20. 8 billion euros), which increased compared to 42. 8 billion POS in 2022, but was 37, 4 % less than the 2019 293. 3 billion MOPS (33. 2 billion euros).

The unemployment rate in 2023 was 2, 7 %, 3, 7 % in 2022 and 1, 7 % for pandemic.

The inflation rate continued to be low, and the average consumer price index increased by 0. 9%.

Thanks to the economic recovery, Macau's financial situation has improved significantly. In the Januar y-November era of 2023, it recorded a budget surplus of 22. 1 billion Macau Pataka (2. 5 billion euros), but in the same period in 2022, it was 21 billion Macau Pataka (2. 4 billion euros). As of the end of November, the fiscal preparation was 573. 5 billion MOPS (65 billion euros), 2, 6 % higher than last year, but 28 % less than before the pandemic. Reserves are enough to cover six years of government spending.

In 2022, direct investment in Macau (PII) reached 367 billion euros (41. 6 billion euros), up 5. 8 % yea r-o n-year. Hong Kong accounted for 42. 4%of the total, and mainland China accounted for 37. 4%, the largest investment (excluding the offshore center investment).

Economic policy

Regarding the economy, in the year of November, the Secretary of the Directors paid special attention to the revitalization of the economy, diversifying the economy, and the continuation of integration into the glator bay area (GBA). Macau's permanent residence holder is 10, 000 Macau Pataka (1, 133 euros), and an unstable resident is 6, 000 Macau Pataka (680 euros). In order to support the birth of a child, parents will be paid 5, 418 Macau Pataka (614 euros) benefits. The government is also promoting new infrastructure, such as the expansion of Hansin and Macau Baya Bridge, the expansion of Macau International Airport.

Macau economy diversified strategies include no n-GAS tourism, convention / exhibition (meeting, incen, meeting, exhibition (mouse)), healthcare (including Chinese medicine), financial services, science and technology, trade, culture, sports, etc. We are aiming to develop the industry. In November, the government announced a development plan (2024-2028) that responded to the diversification of the economy (2024-2028), incorporating strategies and initiatives that aim to increase the ratio of no n-trial industries to 60 % by 2028. 。 Following Macau's gambling reform last year, gambling operators were obliged to invest in no n-industry in line with diversified strategies. Macau has announced in a software speech that the government will guarantee that gambling companies will comply with investment plans. According to industry officials, the lack of diverse labor in Macau has been a disorder of economic destruction. The speech also proposed measures to attract international human resources as an initiative to solve this problem. Regarding the

In terms of currency supply, authorities develop a local bond bazaar (including listing on Greenbonds, mainland organizations and corporate bonds), asset management, cash leasing, investment banks, and the U S-ling payment system that crosses borders. In 2023, the legal basis of the economic system was changed, and it was designed to start the rise of the industry. As of September 2023, bonds issued in Macau were 447 billion Macau Pataka (50. 6 billion euros). According to the government leaders' policy statements, Macau gives priority to the development of the bond market, continues to revise regulations (including the new securities law), support the development of Fintech, and introduce tax incentives to asset management companies. He says he will consider sex.

In terms of environmental policy, restrictions for electric vehicles approval have begun, the import of unrecysi a-free plastic cutlery is prohibited, and the construction of incineration and garbage recycling center is underway.

Financial integration with mainland China

Regarding mainland China, Macau has been positioned as a hub for sightseeing and entertainment (including composite tourism of GBA), and has developed as a hub for business and monetary trading, especially between mainland China and Portuguese countries.

Tsuneki's Guangdong Macau Cooperation Area, which covers 100 square kilometers in Guangdong Province in mainland China, and is under joint management of Guangdong and Macau. The mission is to ensure the diversification of the Macau economy and promote the financial and legal integration of Macau to mainland China and GBA.

In 2023, a policy was formulated for the purpose of follo w-up of integrated guidance. This includes the construction and launch of the legal proposal cluster (nine local governments that provide legal proposals to companies and residents). The housing plan ("New Macau District") has been completed, and 4, 000 houses, paid areas, and amenities have been established. The Macau government's top was a program call, which made a more closely linked regulation between Macau and Tsuneki. We are talking about measures to promote people, products and funds, general organizations of meetings and exhibitions, and cooperation in Chinese classical medicine.

III. Macau and China's mainland business < SPAN> In terms of currency supply, the authorities have regional bonds (including listing on Green Bonds, mainland organizations and corporate bonds), asset management, cash leasing, investment banks, and borders. Evolate the RMB payment system. In 2023, the legal basis of the economic system was changed, and it was designed to start the rise of the industry. As of September 2023, bonds issued in Macau were 447 billion Macau Pataka (50. 6 billion euros). According to the government leaders' policy statements, Macau gives priority to the development of the bond market, continues to revise regulations (including the new securities law), support the development of Fintech, and introduce tax incentives to asset management companies. He says he will consider sex.

In terms of environmental policy, restrictions for electric vehicles approval have begun, the import of unrecysi a-free plastic cutlery is prohibited, and the construction of incineration and garbage recycling center is underway.

Financial integration with mainland China