Cuba Approves 176 Sweeping Free-Market Economic Reforms

The National Assembly of People's Power unanimously approved a package of 176 sweeping economic reforms on June 18, 2026, effectively dismantling the command economy in place since the 1960s. Driven by Miguel Díaz-Canel, the measures aim to rescue a collapsing economy characterized by 20-hour daily blackouts, acute food shortages, and three years of contraction. The reforms allow for private banking, the sale of state-owned properties to foreign and domestic entities, and the removal of the 100-employee cap for private businesses. They also permit individuals to import goods for commercial purposes and encourage investment from Cubans living abroad.

Díaz-Canel stated the plan draws inspiration from the economic models of China and Vietnam. While he admitted internal bureaucracy hindered the economy, he maintained that the shifts do not constitute a renunciation of socialism. The measures received explicit support from former President Raúl Castro, who described them as the most beneficial for the revolution.

The reforms follow intense pressure from the United States, where President Donald Trump imposed an oil blockade in January 2026 and indicted Raúl Castro on federal murder charges. While U.S. Vice President JD Vance indicated the administration is monitoring Cuba's behavioral changes, the U.S. Department of State dismissed the reforms as superficial smoke signals, arguing that substantial political change is required. Meanwhile, the European Parliament blamed the humanitarian emergency on the regime's own failures rather than external embargoes.