Miguel Díaz-Canel announced a package of economic reforms on Friday aimed at restructuring fundamental aspects of the economic model amid an unprecedented crisis characterized by production collapse, blackouts, currency shortages, and increasing pressure from the U.S.
The leader presented the main outlines of a program that, as he stated, aims to “overcome the difficulties of the current moment” and lay the foundations for a new economic operating framework for the country.
The announcement was made during an interview granted to the press team of the Presidency and later broadcast on the program Revista Buenos Días.
There, Díaz-Canel insisted that Cuba is facing a "multidimensional aggression" from the United States and attributed much of the problems currently affecting the population to that policy.
"In every detail of the lives of Cubans, in every family detail, in every aspect of our economy, there are extremely complex situations," he affirmed.
However, beyond the usual accusations against Washington, the intervention was characterized by the introduction of a series of transformations aimed at changing the role of municipalities, state enterprises, the private sector, foreign investment, and the Cubans themselves both on and off the Island.
An economic program for 2026 inspired by China and Vietnam
Díaz-Canel explained that the measures are part of the called Economic and Social Program for 2026, a document submitted for public consultation at the end of last year and subsequently reviewed by Cuban specialists and international experts.
According to his statement, the government studied experiences from countries like China and Vietnam and even utilized artificial intelligence tools to assess potential economic transformation models compatible with the Cuban political system.
"There is a maturity in a significant portion of those ideas," he stated, adding that the proposals are in the final approval phase by the Political Bureau and the National Assembly.
The leader stated that more than twenty areas of transformation have been identified, although he focused his explanations on six main axes: economic management system, municipal autonomy, business autonomy, agricultural recovery, foreign trade, and foreign investment.
Municipal autonomy as a primary commitment
One of the most notable changes announced by Díaz-Canel involves significantly expanding the powers of the municipalities.
According to the explanation, local governments will be able to decide which economic actors operate in their territories, how they interact with each other, and which production development strategies are most suitable for each locality.
"The municipality will be able to import and export without the need for higher structures. It can manage foreign currency income and handle foreign investment, whether with companies or with Cubans residing abroad," he stated.
The proposal also includes that municipalities can approve investments from Cubans residing in Cuba, establish projects with Cubans living outside the country, and design their own productive systems utilizing local resources.
According to the ruling leader, the objective is to reduce reliance on centralized decisions from Havana and to capitalize on the specific economic potentials of each territory.
"I believe that the country will always be stronger and will have greater response capabilities to the extent that the municipalities are also stronger," he stated.
State-owned companies without intermediaries and with greater decision-making power
Another key aspect of the package is the expansion of autonomy for the socialist state enterprise, a sector that has long been identified, even by the authorities themselves, as one of the main sources of economic inefficiency.
Díaz-Canel affirmed that state-owned enterprises will be able to operate "without intermediaries" and with fewer bureaucratic interference.
"They should operate without interference in their management," he expressed.
According to the explanation, they will have the authority to export and import directly, select clients and suppliers, establish economic partnerships with any economic actor, and participate in the currency market.
Furthermore, they will be able to retain part of the foreign currency generated from exports or international contracts to reinvest in their own production processes.
The leader also promised that companies will be able to define their sizes, organize their payroll systems, and use their profits with greater freedom.
"The companies will have a broad purpose; in other words, they will be able to produce and provide services for anything they are capable of, leveraging all their potential without any limits," he stated.
More powers for farmers and producers
The recovery of agricultural production occupies a central place within the reforms.
Díaz-Canel implicitly acknowledged the failure of the policies implemented so far to increase food production and announced new incentives for state, cooperative, and private producers.
Among the proposed measures are increased access to land, mechanisms aimed at reducing the amount of idle land, and new opportunities for collaboration among different economic actors.
Producers will be able to access supply markets directly in both national currency and foreign currency, participate in the foreign exchange market, and open real foreign currency accounts in banking institutions.
Additionally, the government plans to encourage foreign investment in agricultural projects and simplify procedures related to the establishment of agricultural enterprises.
The stated goal is to accelerate national food production and move towards food self-sufficiency, a target that has been reiterated for years by Cuban authorities without visible results.
Foreign trade without intermediary monopolies
The transformations also extend to foreign trade, one of the sectors historically most controlled by the Cuban state.
Díaz-Canel announced that state and non-state economic actors will be able to import and export without the need to rely on intermediary companies.
"The decisions will allow the import and export of economic actors without intermediaries," he assured.
It also announced tariff benefits for those who import raw materials and supplies intended for domestic production, as opposed to those who introduce finished products.
The president also noted that there are plans to allow certain entities connected to foreign trade to operate bank accounts outside of Cuba, a measure that is unusual within the current economic system.
More space for SMEs and reduction of prohibited activities
Regarding non-state management methods, Díaz-Canel promised additional flexibilizations.
He announced the expedited approval of MIPYMES whose applications had been stalled for months and assured that a good portion of those processes will be transferred to the municipalities.
"All those powers will also be transferred to the municipalities; therefore, the process will be simpler," he stated.
It was also announced that the list of prohibited activities for the private sector will be reduced and that the corporate purposes of companies will be broader.
The measure would allow many businesses to diversify their products and services without the need to request additional authorizations.
Foreign investment and the participation of Cubans inside and outside the country
Another of the most significant announcements pertains to foreign investment.
The leader promised to expedite approvals, reduce bureaucratic procedures, and provide greater legal certainty to investors.
"Without obstacles, with a legal framework that provides confidence for both Cubans and foreigners," he stated.
Additionally, it was announced that Cuban residents abroad and Cubans residing in Cuba will be able to participate on equal terms alongside state companies, cooperatives, private actors, and foreign investors.
Gradual elimination of subsidies and future salary reform
Among the announcements with the greatest potential impact on the population is the intention to gradually replace universal subsidies with targeted assistance.
"We will gradually move towards eliminating subsidies on products, in order to implement subsidies for individuals," affirmed Díaz-Canel.
The ruler stated that resources should be focused on vulnerable sectors rather than on generalized subsidy mechanisms.
It also linked the recent reduction of the state apparatus to a future salary reform.
According to his explanation, the savings resulting from the elimination of ministries and administrative positions could be allocated to social programs and to improving the salaries of the budgeted sector.
Foreign exchange market, banking, and financial system
Díaz-Canel announced a greater involvement of companies and other economic players in the foreign exchange market, as well as a strengthening of the national banking system.
Although he avoided providing specific details about the exchange rate or potential monetary changes, he acknowledged the need to reshape the current functioning of the foreign exchange market.
Energy, electric mobility, and vehicles
The reforms also include measures related to the energy crisis.
Díaz-Canel stated that Cuba will focus on expanding the use of renewable energy sources and reducing dependence on imported fossil fuels.
In that context, he stated that over the last five months, only one oil tanker had arrived on the Island.
The president also announced incentives for electric mobility and revealed that numerous restrictions on vehicle imports will be lifted.
The tariff advantages will be particularly focused on electric vehicles and technologies related to solar energy.
Tourism, real estate, and new business opportunities
The leader also acknowledged the difficulties facing the tourism sector.
According to him, some international hotel chains have left the country due to pressures from the United States.
In response, he proposed new modalities of tourism management and the inclusion of new economic players in the sector.
He also talked about promoting real estate businesses linked to tourism, an area that has historically been heavily controlled by the State.
Digital commerce and electronic invoicing
As part of the measures aimed at modernizing domestic trade, Díaz-Canel announced the upcoming implementation of electronic invoicing systems and greater digitalization of commercial operations.
The strategy includes expanding the use of digital platforms and leveraging currently underutilized commercial infrastructures.
Retaining young people in Cuba
The president also acknowledged the need to address the loss of human capital caused by emigration.
He explained that the government is studying salary and economic mechanisms aimed at retaining highly skilled young workers.
"How we protect him financially, how we protect him with incentives," he summarized.
The reforms come amid an offensive from Washington
The context in which these announcements are made is one of maximum tension between Havana and Washington.
This Thursday, the United States sanctioned CUPET, the Cuban Oil Union, under Executive Order 14404, in a measure announced by Secretary of State Marco Rubio that freezes the assets and interests of the Cuban state oil company in U.S. territory.
On June 5, the deadline set by the Office of Foreign Assets Control (OFAC) also expired for foreign companies and financial institutions to cease operations with GAESA, the military conglomerate that controls the Cuban economy, under the threat of secondary sanctions.
The reforms come at a time when the Cuban economy is facing its worst crisis in decades.
The CEPAL projects a contraction of GDP of 6.5% for 2026, while The Economist Intelligence Unit estimates a decline of 7.2%. Economist Pedro Monreal has even warned of the possibility of a contraction close to 15% if the shortage of foreign currency, the energy crisis, and inflation continue to worsen.
Power outages frequently exceed 20 hours a day in large areas of the country, the electricity generation deficit is around 1,800 megawatts, and tourism continues to decline despite significant investments made by the government in hotel infrastructure.
In light of this scenario, Díaz-Canel argues that the transformations will enable the economy to thrive and preserve the current political system.
However, many of the announced measures resemble promises previously made by the government itself, and their partial or incomplete implementation has limited their results.
The great unknown remains the same as it has been with every attempt at economic reform in Cuba over the last few decades: whether the changes will truly be implemented and whether, perhaps, it is not too late.
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