Cuba Announces Its Broadest Economic Reforms Since the 1959 Revolution to Avert Collapse

## Overview On Thursday, Cuban Prime Minister Manuel Marrero delivered a two‑hour address to the National Assembly, unveiling an ambitious package of 176 reform proposals aimed at rescuing an economy on the brink of collapse. The reforms, which would open major sectors to private and foreign investment, have been described by analysts as the most comprehensive overhaul since the 1959 revolution.

## Details of the Reform Package - Banking and Finance: Authorization for the creation of private banks and the issuance of licenses for private companies employing more than 100 workers – a first in Cuba’s history. - Foreign Investment: Legal framework to permit foreign capital in the private sector. - Sectoral Openings: Tourism, agriculture, and the foreign‑exchange market will be opened to investors, whether Cuban or foreign, with no specific implementation timetable announced. - Additional Areas: The proposals also address wages, corporate ownership structures, and broader agricultural policies.

## Political Context The National Assembly is slated to vote on these proposals, which enjoy the backing of the Communist Party. The move follows President Miguel Diaz‑Canel’s call for “urgent changes” to stave off economic collapse amid what he termed “unprecedented U.S. pressure.”

## Expert Commentary London‑based Cuban economist Daniel Turalbas hailed the plan as “the deepest economic reform program since the 1959 revolution,” emphasizing its potential to fundamentally shift Cuba’s development model.

## Economic Challenges Facing Cuba - U.S. Sanctions: Havana continues to attribute the crisis to a six‑decade‑long U.S. embargo, but officials acknowledge internal obstacles beyond external pressure. - Oil Embargo: A sanctions package imposed by former U.S. President Donald Trump in January further strained an already faltering economy. - Humanitarian Strains: Persistent electricity blackouts, acute shortages of food and medicines, and deteriorating living standards have intensified public discontent.

## Outlook If the reforms are enacted, Cuba will embark on an unprecedented shift toward a mixed economy, potentially altering the nation’s long‑standing socialist trajectory. The success of the measures will depend on legislative approval, implementation speed, and the ability to navigate both domestic constraints and external sanctions.