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Díaz‑Canel Announces Broad Decentralization and Market Openings for Cuba

The package aims to attract investment by giving local authorities more control to shore up state finances.

Overview

  • President Miguel Díaz‑Canel unveiled the Economic and Social Program for 2026 that transfers decision making and foreign‑currency control to municipalities and expands autonomy for state firms.
  • The plan lets state enterprises set wages without preset ceilings and participate directly in the foreign‑exchange market, a move designed to make them operate more like private firms.
  • Officials said the government will open more sectors to private companies, speed approvals for new businesses, and explicitly invite investment and participation from Cubans living abroad.
  • The program proposes a sharp cut in ministries and bureaucratic jobs to reduce public spending and finance a future wage reform, but those cuts need parliamentary approval expected in July.
  • Leaders framed the changes as a response to a deepening economic and energy crisis worsened by tightened U.S. restrictions, yet officials gave few concrete steps or a timetable so near‑term effects on shortages and daily life remain uncertain.