On Wednesday, Cuban Prime Minister Manuel Marrero Cruz acknowledged that the most challenging phase of the economic reform package initiated by the regime is just beginning. He admitted that the primary challenge now is not the approval of new measures, but rather ensuring their implementation and achieving tangible results amid the country's deepening crisis.
During his presentation to the National Assembly of People's Power, Marrero outlined the economic transformations recently approved and emphasized that the government is entering a critical stage.
"From now on, we enter the most crucial and perhaps the most difficult stage," Marrero stated, as reported by the official media outlet Cubadebate.
Implementation of Reforms: A Significant Hurdle
The head of government emphasized that the success of this process will hinge on the ability to implement these measures, assess their outcomes, and address any shortcomings that arise during execution.
According to Marrero, of the 121 measures planned for June and July, 110 have been approved, representing 90.9% of the intended plan. Five others are partially in progress, and the remainder will be submitted for approval by the end of the week.
Yet, the prime minister himself acknowledged that the real challenge lies in turning these decisions into concrete changes.
"The most important thing is that we have 110 transformations approved, which depend on us to bring them to fruition," he noted.
This statement highlights a longstanding issue with economic reforms in Cuba: the gap between approved regulations and their effective implementation.
Expanded Autonomy for State Enterprises
Among the highlighted measures is a new decree-law that expands the powers of state-owned enterprises. Under this regulation, entities can establish their own salary systems, set prices and rates, make financial investments, and decide on the termination of employee contracts.
Marrero described this change as the most significant transformation in wage policy in recent years.
Adjustments for Private Enterprises
In the private sector, the government announced that over 15,000 micro, small, and medium enterprises (MSMEs) and non-agricultural cooperatives are now operational.
Additionally, starting Tuesday, Decree 160 came into effect, removing 46 prohibitions for non-state economic actors and partially relaxing another 36. This new regulation replaces Decree 107 of 2024, which restricted 125 economic activities.
Despite the relaxation, the regime continues to prohibit 79 activities, indicating that the opening to the private sector remains limited.
Tourism Woes and Energy Crisis Reveal Depth of Economic Troubles
During his address, Marrero also acknowledged the decline in one of the Cuban economy's strategic sectors. The prime minister reported that 73% of hotel facilities remain closed, leaving about 25,000 workers in a state of employment uncertainty.
This situation is compounded by the exit of seven international hotel chains, including Meliá, Iberostar, and Barceló, which managed nearly 46% of the rooms operated under this model, according to data published by EFE.
Regarding the energy crisis, Marrero admitted that prolonged blackouts continue to be a major issue for the population, although he claimed that 1,464 MW of generation from renewable sources have been added, equivalent to 13.8% of the national electric capacity.
As part of the state restructuring, the government announced the elimination of over 92,000 positions in the Ministries of Public Health, Education, Culture, and Sports.
According to Marrero, the reduction primarily affects administrative positions that were vacant, while the rest of the state agencies must complete this process by September.
Lingering Doubts on the Extent of Reforms
The measures are being announced in an especially challenging economic context for the island.
The Economic Commission for Latin America and the Caribbean (ECLAC) projects a 6.5% contraction of Cuba's Gross Domestic Product (GDP) in 2026. Various economists believe that the reforms are overdue and fail to address the structural problems of the economy.
Economist Mauricio de Miranda Parrondo has warned that the process could lead to authoritarian capitalism controlled by the Communist Party, without political transformations that would allow for real institutional change or a substantial improvement in living conditions for the population.
At the conclusion of his speech, Marrero cited Fidel Castro and Raúl Castro to emphasize that the measures do not signify an abandonment of the socialist model.
"This is not a shift towards capitalism, but rather an update of the socialist model," he asserted, stressing that the process requires "boldness, intelligence, realism, and the participation of the entire people."
Key Questions About Cuba's Economic Reforms
What is the main challenge facing Cuba's economic reforms according to Manuel Marrero?
Manuel Marrero stated that the main challenge is not approving new measures but ensuring their implementation and achieving results amid the country's crisis.
How many economic measures have been approved in Cuba's reform plan?
Out of 121 planned measures, 110 have been approved, representing 90.9% of the plan.
How is the energy crisis affecting Cuba?
Prolonged blackouts remain a major issue, although 1,464 MW of renewable energy generation have been added, making up 13.8% of the national capacity.