Miguel Díaz-Canel announced on Friday a package of economic reforms aimed at restructuring fundamental aspects of the economic model in the midst of an unprecedented crisis, characterized by production collapse, power outages, a foreign currency shortage, and increasing pressure from the U.S.
The leader presented the main outlines of a program that, as he stated, aims to “overcome the current difficulties” and lay the groundwork for a new economic operational framework for the country.
The announcement was made in an interview granted to the Presidential press team and subsequently broadcasted on the Revista Buenos Días program.
There, Díaz-Canel emphasized that Cuba is facing a "multidimensional aggression" from the United States and attributed a significant portion 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 stated.
However, beyond the usual accusations against Washington, the intervention was marked by the presentation of a series of transformations aimed at changing the role of municipalities, state-owned 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 that was submitted for public consultation at the end of last year and subsequently reviewed by Cuban specialists and international experts.
According to the statement, the government studied the experiences of countries like China and Vietnam and even used artificial intelligence tools to assess possible economic transformation models compatible with the Cuban political system.
"There is a maturity to a significant portion of those ideas," he stated, adding that the proposals are in the final approval stage by the Political Bureau and the National Assembly.
The official stated that more than twenty areas for transformation have been identified, although he focused his explanations on six main axes: economic governance, municipal autonomy, business autonomy, agricultural recovery, foreign trade, and foreign investment.
Municipal autonomy as the main commitment
One of the most striking changes announced by Díaz-Canel is the substantial expansion of the municipalities' powers.
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 what the most appropriate production development strategies are for each locality.
"The municipality will be able to import and export without the need for higher structures. It will manage foreign currency revenues and oversee foreign investment, whether with companies or with Cubans residing abroad," he stated.
The proposal also includes allowing municipalities to approve investments from Cubans residing in Cuba, establish projects with Cubans living abroad, and design their own production systems utilizing local resources.
According to the leader, the goal is to reduce dependence on centralized decisions from Havana and to take advantage of the specific economic potential of each region.
"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 pillar of the package is the expansion of the autonomy of the socialist state enterprise, a sector that for years has been identified even by the authorities themselves as one of the main sources of economic inefficiency.
Díaz-Canel stated that state-owned enterprises will be able to operate "without intermediaries" and with less bureaucratic interference.
"Let them operate without interference in their management," he stated.
According to the explanation provided, they will have the authority to import and export directly, select clients and suppliers, establish economic partnerships with any economic actor, and participate in the foreign exchange market.
In addition, they will be able to retain part of the foreign currency obtained through exports or international contracts to reinvest it in their own production processes.
The leader also promised that companies would be able to define their size, organize their pay systems, and use their profits with more freedom.
"Companies are going to 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 greater access to land, mechanisms aimed at reducing the amount of idle land, and new opportunities for collaboration among various economic actors.
Producers will be able to access input markets directly in both local currency and foreign exchange, participate in the currency market, and open real foreign currency accounts in banking institutions.
The government also plans to facilitate foreign investment in agricultural projects and simplify the procedures related to the establishment of agricultural enterprises.
The stated goal is to accelerate domestic food production and move towards food self-sufficiency, a target 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 both state and non-state economic actors will be able to import and export without the need to necessarily go through 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 national production, as opposed to those who bring in finished products.
The president also indicated that there are plans to allow certain entities linked to foreign trade to operate bank accounts outside of Cuba, a somewhat unusual measure 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 significant portion of those processes would 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 more extensive.
The measure would allow numerous businesses to diversify their products and services without needing to request additional authorizations.
Foreign investment and participation of Cubans inside and outside the country
Another of the most significant announcements pertains to foreign investment.
The ruler promised to expedite approvals, reduce bureaucratic procedures, and provide greater legal security to investors.
"Without barriers, with a legal framework that provides confidence for both Cubans and foreigners," he stated.
Additionally, it was announced that Cubans residing abroad and those living in Cuba will be able to participate on equal terms alongside state-owned enterprises, cooperatives, private actors, and foreign investors.
Gradual elimination of subsidies and future wage reform
Among the announcements with the greatest potential impact on the population is the intention to progressively replace universal subsidies with targeted assistance.
"Let's gradually move towards eliminating subsidies on products to begin implementing subsidies for individuals," stated 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 with a future salary reform.
According to the explanation, the savings from the elimination of ministries and administrative positions could be allocated to social programs and to improve salaries in the budgeted sector.
Foreign exchange market, banking, and financial system
Díaz-Canel announced a greater involvement of companies and other economic actors 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 assured 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 in the last five months, only one oil tanker had arrived on the Island.
The official also announced incentives for electric mobility and disclosed that numerous restrictions on vehicle imports would be lifted.
The tariff advantages will be specifically aimed at electric vehicles and technologies associated with solar energy.
Tourism, real estate, and new businesses
The ruler also acknowledged the difficulties faced by the tourism sector.
According to him, some international hotel chains have left the country due to pressure from the United States.
In response, he proposed new models of tourism management and the incorporation of new economic players into the sector.
He also spoke about promoting real estate businesses linked to tourism, an area that has historically been strongly 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.
According to the explanation, 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 amidst an offensive from Washington
The context in which these announcements are made is one of extreme tension between Havana and Washington.
This Thursday, the United States sanctioned CUPET, the Cuba Petroleum Union, under Executive Order 14404, in a measure announced by Secretary of State Marco Rubio that blocks 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 experiencing its worst crisis in decades.
CEPAL projects a GDP contraction of 6.5% for 2026, while The Economist Intelligence Unit estimates a decline of 7.2%. Economist Pedro Monreal has even warned about the possibility of a contraction close to 15% if the shortages of foreign currency, the energy crisis, and inflation continue to worsen.
Blackouts often exceed 20 hours a day in wide areas of the country, the electricity generation deficit hovers around 1,800 megawatts, and tourism continues to plummet despite significant investments made by the state in hotel infrastructure.
In light of that situation, Díaz-Canel asserts that the transformations will energize the economy and preserve the current political system.
However, many of the announced measures resemble promises made earlier by the government itself, and whose partial or incomplete implementation has limited their results.
The great question remains the same that has accompanied every attempt at economic reform in Cuba over the last few decades: whether the changes will actually be implemented and if, perhaps, it is not too late.
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