Cuba approves sweeping economic reforms amid deepening crisis

Cuba’s parliament unanimously adopted a package of 176 measures that dramatically decentralise the island’s economy, expanding private‑sector participation, granting local municipalities control over production, imports and exports, and allowing state‑owned firms to operate with greater autonomy. The reforms also aim to reduce subsidies, open foreign‑currency accounts for individuals and permit private banks and foreign investment.

The changes come as Cuba faces its worst power and fuel shortages in decades, with many residents receiving only two hours of electricity per day. A France 24 report quoted a Havana resident: “Right now, we’re speaking out because we can’t take it anymore.” Local authorities in Camagüey have even capped charcoal prices to curb speculative spikes.

U.S. sanctions under the Trump administration have tightened the energy embargo, intensifying the crisis and prompting the government to seek a “very Cuban” market‑oriented model inspired by Vietnam and China. Officials stress that the reforms are presented as essential for preserving socialism, but analysts warn that their impact will depend on the gradual lifting of U.S. restrictions and on rebuilding investor confidence.