Brussels, 31/07/2003 (Agence Europe) - The European Commission has published its third annual report on the Special Administrative Region of Macao, noting that three years after the former Portuguese colony was returned to the People's Republic of China, Macao's government was in quite a prosperous economic situation and the authorities' policy of diversifying the economy being a function of their clear vision of the area's strengths and weaknesses. It notes that liberalising the gambling industry had already borne fruit and would attract around EUR 2 billion in investment in coming years. Economic success that has helped install an optimistic social climate for the medium term. The Commission considers, however, that various tasks need to be carried out, such as diversifying export structure, reforming the legal system, updating the administration and the hospital system, improving social security and making changes to the labour force. It remains confident, stating that it was encouraging to note that Macao's government is aware of the challenges and determined to make the necessary reforms. The report (in French) can be consulted at: http: //europa.eu.int/eur-lex/en/com/cnc/2003/