On Wednesday, Cuban Prime Minister Manuel Marrero Cruz addressed the National Assembly of People's Power, staunchly defending ongoing economic reforms while emphasizing that Cuba remains committed to socialism. His speech, peppered with quotes from Fidel Castro and revolutionary slogans, aimed to reassure that despite introducing measures perceived as capitalist by analysts and critics, the socialist ideology remains intact.
"We affirm that we are not steering away from our socialist model. On the contrary, we will defend it by making necessary decisions to strengthen it," Marrero proclaimed during his parliamentary address. "We are committed to pushing forward profound economic and social transformations without hesitation."
The address came in the context of a package of 176 economic and social changes, organized under 23 thematic axes, which the National Assembly ratified on June 18 and 19, 2026. This package, according to the government, represents the most significant modernization of Cuba's economic model in decades.
Among the approved measures are the authorization of private banking and private exchange houses, lifting the cap of 100 workers for small and medium-sized enterprises, allowing individuals to own more than one business, opening up to foreign franchises, and transforming state companies into joint-stock companies.
This Wednesday, Marrero also revealed that the first private exchange house in Cuba is now set to operate as a pilot project.
Progress and Challenges of Economic Reforms
Regarding the progress of implementation, the Prime Minister noted that out of the 121 transformations planned for June and July, 110 have already been approved, which represents a 90.9% completion rate, with another five undergoing partial approval.
The regime also announced the elimination of 92,000 public sector jobs in Health, Education, Culture, and Sports, primarily targeting vacant administrative positions, with further cuts anticipated in September across other ministries.
Additionally, the state structure will be reduced from 27 to 21 ministries, and the National Institute of State-Owned Business Assets (INAEES) will be established. There will also be a 53% increase in the minimum wage for budgeted sectors, from 2,100 to 3,210 pesos, starting in August.
Ideological Defense Amid Reforms
To ideologically fortify reforms that contradict revolutionary orthodoxy, Marrero invoked a quote from Fidel Castro dated December 5, 1988: "Socialism is and will be the hope, the only hope, the only path for the people, the oppressed, the exploited, the plundered. Socialism is the only alternative, and today, when enemies seek to question it, we must defend it more than ever."
Marrero's speech also coincided with the upcoming centennial of Fidel Castro's birth on August 13. He concluded his address with fervent slogans: "Long live the revolution! Long live Fidel! Long live Raúl! Ever onward to victory! Homeland or death, we shall overcome!"
The socialist rhetoric starkly contrasts the reality of reforms that arrive late to a nation mired in a severe economic crisis. According to economists and independent media, these changes might exacerbate inequality without addressing the structural causes of the collapse.
Marrero described the current phase as "the most significant and challenging" of the process, acknowledging the necessity to implement measures and correct deviations.
Understanding Cuba's Economic Reforms
What are the recent economic reforms in Cuba?
Recent reforms in Cuba include the introduction of private banking, authorization for private exchange houses, lifting restrictions on the number of employees for small enterprises, allowing ownership of multiple businesses, and opening up to foreign franchises.
How is Cuba justifying these capitalist measures?
Cuba justifies these measures by asserting that they are necessary to strengthen the socialist model, claiming that these changes are part of a broader strategy to modernize the economy while retaining socialist principles.