As promised, the full text of Cuban Prime Minister Manuel Marrero Cruz's address during the extraordinary session of the National Assembly of People's Power, held on the afternoon of June 18, 2026, is provided below. In it, he reads and comments on all 176 proposed amendments, divided into 23 categories, that the Assembly is to approve. Since the deputies had the PowerPoint presentation with its numbering displayed on a giant screen, Marrero did not read the numbering aloud.

Manuel Marrero Cruz: Socialist planning does not exclude market rules: it must incorporate and regulate them.

Jacques-François Bonaldi 

Consequently, it is difficult to distinguish the exact wording of the proposal from his commentary in the transcript provided by the President's office. This full text is not yet available and is supposed to appear on the President's website after today's (Thursday the 25th) Council of Ministers meeting. LGS readers will overlook this drawback to access this document (still untitled) which radically alters the economic and social policies of the Cuban Revolution. I will not comment on it. My intention is to translate several very useful Cuban commentaries and texts published on Cuban social media that list, for each area, the changes made and allow us to see concretely where and how the Cuban Revolution is shifting its perspective...

Just a brief thought: while the Revolution is embarking on the path of economic liberation and privatization, opening itself to the market as a policy regulator, abandoning its staunch defense of "social justice," and accepting the inevitability of increased social inequality, the neighbor across the river, which has always demanded such a change of course, is, so to speak, turning up its nose (given the individuals involved, the most accurate expression would be "sulking"!). And to clearly demonstrate his displeasure, Narco Rubio sanctioned five new Cuban entities, which he claimed were linked to what had become his obsession: GAESA, and another member of Raúl Castro's family. This is further proof, if any were needed, that what the White House and the establishment expect from the Cuban authorities is not that they strive to bail out socialism, which has been reduced to a pittance precisely as a result of the all-out war being waged against it from Washington and Miami (the proposals, we repeat here far and wide, are presented to save socialism, not to sabotage it), but that they do precisely that: liquidate socialism and never speak of this unspeakable thing again! And above all, clear out and make way for others!

So I repeat the question I, and many others, have already asked myself: how can the amendments presented and adopted last week—at least a good part of them—be implemented if the external context and environment do not change? In other words, if, far from easing their blockade, Washington and Miami continue to tighten their grip to further strangle the Cuban economy and society? The sanctions will weigh as heavily on private actors—who now have a free hand—as they already do on public actors. Will foreign investors, to whom we are welcoming with open arms, now rush to do business on an island forced to grind to a halt because it cannot produce enough electricity to meet its needs, due to an energy encirclement imposed by the enemy that no foreign government or oil company dares to defy? Will these same foreign investors see the sword of Damocles—US sanctions, threats, blackmail, and fines—disappear from their heads?

In short, if nothing changes outside; if the enemy, who has already interpreted events to suit his purposes (as he does to mask his defeat against Iran), believes that it is thanks to our policies that the Castroites are giving in and that we must force the issue to make them give in once and for all (a misinterpretation, since these proposed changes have been under consideration for a good ten years, although never implemented); if the famous "international community" continues without batting an eye or flinching to watch an entire people being strangled without acting or reacting, just as it allowed and continues to allow the Zionist criminals in the Netanyahu government to commit genocide against the Palestinian people in Gaza and the occupied territories, and now in Lebanon; if the United Nations remains this body without any real power (let's not even talk about democracy!) to impose even a modicum of order and international law; If Latin America were to become, election after election, the US stronghold it was for much of the 20th century, and therefore if the sub-continent is filling up with right-wing and far-right governments for whom Trump is the model to follow, the example to imitate, and who will enthusiastically obey, with their little fingers on the seam of their trousers, all his injunctions against the "communist cancer" that is the Cuban Revolution. In short, I repeat, if nothing changes, it's hard to see how the planned modifications can be fully implemented or yield the expected results...

I hope I'm wrong!

Finally, the complete official version of the modifications is now available for download as a PDF at:

http://www.cubadebate.cu/noticias/2026/06/25/descargue-en-pdf-las-176-transformaciones-economicas-y-sociales/

Jacques-François Bonaldi (Havana), Thursday, June 25, 2026.

Manuel Marrero Cruz: Socialist planning does not exclude market rules; it must incorporate and regulate them.

Address by Manuel Marrero Cruz, Prime Minister of the Republic of Cuba, at the Third Extraordinary Session of the National Assembly of People's Power in its Tenth Legislature, at the Congress Palace, June 18, 2026, "Centenary Year of Commander-in-Chief Fidel Castro Ruz."

Stenographic Versions - Republic of Cuba (Translation: Jacques-François Bonaldi)

TRANSLATION FROM FRENCH BY JULES LETAMBOUR

Comrade General Raúl Castro Ruz, leader of the Cuban Revolution;

Miguel Mario Díaz-Canel Bermúdez, First Secretary of the Central Committee of the Communist Party of Cuba and President of the Republic;

Comrade Esteban Lazo Hernández, President of the National Assembly of People's Power and of the Council of State;

Commander of the Rebel Army, José Ramón Machado Ventura;

Dear Members of Parliament;

Fellow Cubans,

Our country, as we all know, is going through one of its most complex periods since the Special Period. It is facing a combination of coercive measures by the United States against Cuba, unprecedented in history, including the interruption of its fuel supplies and all its sources of foreign currency. This has logically led to a significant deterioration and instability of energy infrastructure and, consequently, of the quality of life of millions of Cubans.

We have never denied our own mistakes and shortcomings; However, this set of factors has had a lasting influence on the effective implementation of the transformations of our Economic and Social Model, approved by the Sixth Party Congress in 2011, which yielded positive results until mid-2019, when the US administration substantially tightened its sanctions policy and further strengthened it in early January 2025.

In this context, the party and the government, in the legitimate exercise of sovereignty, promoted measures to reactivate the economy and correct distortions, a process reinforced by the approval of the government's Economic and Social Program, which our people validated through a popular consultation.

Therefore, drawing directly from this vital force, from this popular sentiment, we have decided to propose strategically impactful transformations to the nation's Economic and Social Model, which does not mean, however, that we are abandoning the preservation of the Revolution's principal achievements.

The transformations we are about to present are rooted in the thinking of the Commander-in-Chief, not as a renunciation of building socialism, but as a condition for its preservation. In 1993, at the height of the Special Period, he warned: “Today, life, reality, the dramatic situation the world is going through—this unipolar world—compels us to do what we would never have done otherwise if we had the capital and the technology to do so.”

Without ever abandoning socialism, these transformations were conceived according to a guiding principle: doing what is necessary to preserve what is essential.

The expansion of participation by all economic actors on an equal footing, and of foreign investment, or the acceptance of market mechanisms as instruments for allocating resources, do not constitute, according to this logic, a capitulation, but a sovereign exercise to adapt development tools to the concrete circumstances the country is experiencing.

Army General Raúl Castro Ruz, leading the update of the Cuban Economic and Social Model formalized in the Orientations and in the Conceptualization approved by the last congresses of the party, laid down the following premise: not to be dogmatic or static; to banish the mechanical association between socialism and egalitarianism; to recognize that socialist planning does not exclude, but must incorporate the rules of the market and regulate them.

Fellow members:

In preparing these proposals for transformation, consideration was given to the recommendations of the Army General and the First Secretary of the Central Committee of the Communist Party of Cuba and President of the Republic; the government's Economic and Social Program for 2026; the proposed update of the Conceptualization of the Economic and Social Model; and the agreements of the Congress of the National Association of Economists and Accountants of Cuba (ANEC).

The results of consultations with 46 members were also taken into account, including key state and government officials, heads of national entities, presidents of the Higher Organization of Entrepreneurial Leadership (OSDE), experts and academics; representatives of the economic commissions of the party and the National Assembly, ANEC, economists, and 87 members of the Auxiliary Structure of the Central Committee of the party.

390 proposals were received, of which 66.7 percent were accepted. The remainder relates to subsequent implementation, other positive assessments of the document, and aspects that do not constitute transformations in themselves.

Following the analysis of the transformation proposals conducted by the Politburo, 69 recommendations were incorporated into the document.

Yesterday, as Comrade Lazo stated, a broad debate took place during the Extraordinary Pl

enum of the Party's Central Committee, whose proposals and reflections are being analyzed to enrich this document.

The presented document comprises 176 transformation proposals grouped into 23 fundamental areas of the country's economic and social life.

Among the main transformations proposed within the framework of the Economic Management System are those related to the management model of economic actors. Among these decisions, one was made concerning the socialist public enterprise:

To expand the capabilities of the public entrepreneurial system so that it operates with greater autonomy and under conditions similar to those of other economic actors. This includes engaging in any legal activity without abandoning its primary social purpose. From now on, what is approved for other actors will also apply to the socialist public enterprise.

To decentralize the power to set wholesale and retail prices to the entrepreneurial system itself. Price formation will take into account costs, expenses, market trends, value chains, and the vertical and horizontal relationships between the various economic actors.

To resize the Higher Organizations of Entrepreneurial Management (HOEMs), excluding public functions and those specific to individual enterprises.

It is crucial to clarify one point: even if enterprises are integrated into Higher Organizations of Entrepreneurial Management, they cannot lose their management and operational autonomy.

Authorize state-owned enterprises (SOEs) to create public enterprises and micro, small, and medium-sized enterprises (MSMEs), and, in turn, allow enterprises to approve their subsidiaries and public MSMEs. Both parties—that is, SOEs and enterprises—will be empowered to decide on mergers, dissolutions, liquidations, and other organizational changes, as appropriate. Currently, all these powers are centralized within the Ministry of Economy and Planning.

Furthermore, SOEs will be empowered to define their own structures and personnel, as well as to consolidate administrative positions or outsource services.

Streamline the provisions allowing enterprises to approve the allocation of profits after tax payments.

Update the functions and powers of Boards of Directors to streamline their operations.

Enable entrepreneurial entities participating in supply chains to access the foreign exchange market under the new conditions resulting from the implementation of these reforms.

Decentralize the definition of wage scales to the business sector. Wage levels negotiated with workers and with union participation will depend solely on the company's economic and financial capacity.

Change the relationship between the state budget and the business system, including revising and gradually eliminating the financial burden and subsidies on businesses.

To give you an idea, the state budget subsidizes the economic system to the tune of 92.5 trillion pesos, half of which is exclusively allocated to subsidizing electricity rates.

Grant provincial administrations and municipal councils the authority to create, establish, merge, eliminate, and liquidate public enterprises, and to carry out other organizational changes. This empowers municipalities to approve the classification of public and non-public economic actors.

Reduce the indicators used to measure the effectiveness of the public business system to the bare minimum.

Enable businesses, including private companies, to make financial investments and encourage them to do so.

Design financial instruments that allow for the capitalization of businesses without the involvement of the state budget.

Implement a national program for the valuation and securitization of public enterprise assets. This is the well-established method for determining the true value of our assets, and to this end, it is proposed to conduct a national inventory of the tangible and intangible assets of the business system, along with a market valuation.

Issuance of enforceable certificates of ownership that can serve as collateral for bank loans.

Allow public enterprises to monetize underutilized assets through long-term leases to various economic actors and foreign investors.

Propose the design of an efficient and competitive entrepreneurial system that generates revenue to support the services of social sector organizations. This will allow us to add other sources of income without relinquishing the budget's responsibility to support our healthcare, education, culture, and sports systems.

Establish bankruptcy, liquidation, and asset restructuring procedures for those experiencing repeated losses in the entrepreneurial sector.

Transform the public socialist enterprise into a commercial company, through shares or equity investments. This is a proposal of great importance. To this end, the State will define its participation in economic sectors, guaranteeing its majority presence in strategic sectors.

Public enterprises will be able to purchase shares in other companies; non-public management entities and individuals will also be able to purchase shares, according to a phased approach to be defined. To achieve this, companies will need to be categorized.

Regarding non-public management structures and agricultural cooperatives, it is proposed to authorize the creation of MSMEs and non-agricultural cooperatives once the platform for economic actors is approved, which has been significantly delayed.

To date, 12,751 non-public MSMEs have been approved, while 7,254 applications are pending at various stages. Of these, 3,505 have been certified and updated by the applicants—meaning they have resubmitted—and the remainder will be approved by the end of the month.

Applicants who update these 3,505 applications have been asked not to resubmit them after doing so, in order to expedite the review process for approval, as we need to continue adding new actors who produce and provide services.

Reduce the conditions, procedures, and timeframes for creating, converting, and operating non-public management structures, even going so far as to define and, in some cases, eliminate administrative approval to shorten these processes.

Authorize the hiring of more than 100 workers, the current limit for MSMEs, beyond which they will be considered private companies.

Allow an individual to own more than one private company. Currently, they can only own one MSME.

Expand the corporate forms under which private companies can be organized, including as public limited companies, as is becoming the case for public companies.

Allow the same individual to be a shareholder in more than one private company. In other words, they can own two or more private companies, but they can also hold shares or an interest in several companies or MSMEs.

Granting real rights, including usufruct and surface rights, to private companies or cooperatives allows them to invest in developing their productive or service activities. Until now, this has been completely prohibited, which is why many businesses operate directly from individuals' homes. With this decision, they can apply for land and construct the buildings they need to develop their commercial activities.

Allow foreign currency cash deposits from non-public entities to be credited to bank accounts in the same currency in which they were deposited, subject to a declaration of the legitimate origin of these funds, while granting them the right to withdraw this money in the same currency.

Allow non-public entities to develop other productive and service activities without abandoning their primary activity, i.e., eliminating this complementary or secondary purpose.

Reduce the list of activities prohibited for non-public economic entities.

We are concluding the update of Decree 107, which currently contains 125 activities prohibited for various non-public entities; once completed, it will be possible to lift the prohibition on approximately 70 activities.

The decision to ease and minimize the approval requirements for these non-public actors will necessitate a review of the Economic Actors Platform, utilizing artificial intelligence to ensure its ongoing transparency, traceability, and agility.

Transform the institutional structure, as well as the forms of ownership and management of the agricultural sector's productive base. Allow for the existence of private enterprises. Currently, we are familiar with cooperatives; some producers employ over 300 agricultural workers, yet they are not formally organized. Therefore, it is essential to recognize that these are agricultural enterprises.

Develop an input market with the participation of all stakeholders and access to the foreign exchange market.

Create a national platform for production chains that mandates companies to disclose their needs, projects, input requirements, and subcontracting needs, as well as providing tax incentives for purchasing domestic products.

I now turn to the transformations of property relations, as well as the differences between ownership and management:

First, we ratify the social ownership of the fundamental means of production, and we will make progress in this regard concerning their non-public management.

We authorize the purchase of shares in public enterprises by public and non-public legal entities, both domestic and foreign, as well as by individuals.

We authorize the sale of public assets to domestic and foreign legal and natural persons, including Cubans living abroad, provided that the legal origin of the funds is demonstrated.

We create an investment program that encourages the participation of Cuban companies owned by Cubans residing both in the country and abroad.

We recognize the legitimate growth of the financial and material assets of legal and natural persons. It is logical that if we offer them the opportunity to expand their businesses, to own more companies, we should recognize it.

Guarantee the protection of professional and social rights without permitting the indiscriminate exploitation of human beings.

Regarding the transformations of the economic planning system, the proposals are as follows:

Improve medium- and long-term planning, focused on development design, by prioritizing macroeconomic balances; reduce structural problems and provide policy signals to the various economic actors.

Incorporate the economic, commercial, and service activities of non-public economic actors into the projections of the National Economic and Social Development Plan to 2030 and into the provincial and municipal development strategies, as we have recognized that there is currently no clear control over everything they produce and do. It is therefore essential to integrate, recognize, and even include them in strategic, territorial, and local planning.

It is vital to transform the planning system based on the powers granted by these transformations to the various actors in their search for material and financial resources. Therefore, it is proposed to move towards a financial planning model where the State gradually relinquishes the physical distribution of resources, thus allowing greater participation in market signals.

Public enterprises will access inputs, foreign currency, fuel, and other resources necessary for their production in a decentralized manner through market mechanisms. What the State can acquire will be allocated primarily to social institutions and services. Consequently, the entire system of public and non-public enterprises must strive to meet its needs through its own management and resources.

State orders will be executed according to a contractual mechanism between supply and demand entities.

Planning must take into account the satisfaction of domestic market demand; regardless of the actors involved, they must strive to produce what the country requires.

Maintaining the fundamental balances of the economy. We must have basic control over various balances—agrifood, foreign exchange, energy—as well as the state budget, so that these become tools for diagnosing, anticipating, and correcting policies.

We must broaden the scope of investment approvals by decentralizing authority to public enterprises, commercial companies, and foreign investment. Based on what? Their own capabilities, both financial and in terms of access to resources, so that making an investment is not so complicated: if you generate and have the resources, you can decide to make that investment.

Regarding the transformations and resizing of the budgeted sector, the primary proposal is to downsize the central government administration.

A draft law is already circulating that entails a significant reduction in the number of ministries, as well as the reduction and streamlining of all state and government budgeted structures.

This will also impact the resizing of the structures and staff of territorial and local administrations.

Regarding the strengthening and autonomy of municipalities, several transformations are proposed. We propose that this empowerment of municipalities, this need to achieve autonomy, involves decentralizing the following issues from various levels—the nation and the province—to them: strategic planning; territorial and urban development; food sovereignty and food and nutritional security; municipal services; and the promotion of local economic development, which includes diversifying and strengthening its productive fabric, envisioning the participation of various economic actors, Cubans residing in the country or abroad, and local production systems.

Furthermore, the capacity to export and import directly, as well as to generate and retain foreign currency for current and capital expenditures within the municipality itself.

We also propose stimulating and managing foreign direct investment, which municipalities themselves can approve without further procedures.

Administrative management of the municipality's human resources; local budgetary, financial and fiscal management; environmental management and addressing climate change; social care and provision of social services; governance, popular control and citizen participation, as well as knowledge and training project management.

These changes allow municipalities to approve investments and businesses in accordance with their development strategy, which includes managing projects for Cubans living in Cuba and abroad, and defining credit terms to support their strategic planning.

Municipal funds will be created using contributions from the profits of the entrepreneurial system, whether state-owned, private, or cooperative, and from shareholding. In fact, municipalities, in addition to owning municipal enterprises, will be able to purchase shares in public companies and hold a stake. All these dividends will be part of this development fund, where each participant can submit projects for the development and promotion of activities within their territory.

Agricultural delegations at the municipal and provincial levels are eliminated, and a new structure is created for the territories.

What will happen? It must be said that today, the functions of these provincial and municipal delegations are completely distorted, because instead of fulfilling the public functions for which they were designed, they are even engaging in entrepreneurial management.

What would remain of national subordination, in other words, that related to the Ministry of Agriculture, in the provinces and municipalities? Structures and offices will be created to handle state policy regarding land use and public livestock control; while municipal subordination will be responsible for implementing policies, promoting, and controlling food production.

The same personnel available today will be sufficient to create this national office to control land and livestock, and also to provide municipalities with a structure that controls and promotes food production for the various stakeholders and production methods.

Diversify the mechanisms and means of revenue collection in municipalities in order to strengthen their management and development.

Strengthen the local economic system with the participation of various stakeholders.

Establish payment for the collection of urban solid waste. This is important, and despite the complex situation, we must continue to seek alternative solutions and ensure the cleanliness of our cities.

It is proposed to implement differentiated pricing, without subsidies, so that all economic actors, both public and private, pay for solid waste collection. For the general public, subsidized rates should be offered to households based on their income level, with a guarantee that their waste will be collected.

Transform the conditions and management of local development projects. Incentives must be put in place to encourage economic and productive projects to evolve towards alternative public and private models.

Recognize the capacity of municipalities to collaborate in solving common problems. Today, we have large municipalities with abundant resources and small municipalities with limited productive activity that can collaborate. It is even possible for two municipalities to decide on certain services and productions located within a single territory, with the outputs benefiting both. Examples already exist, but this should be recognized and implemented wherever it would be beneficial to both municipalities.

Given the complex energy situation, a series of actions has been implemented under General Objective No. 9 of the Government Program, to which we now propose adding the following energy transformations:

Enabling private and foreign capital participation in the import and marketing of fuels, including the retail network. We have opened up the market and removed all obstacles so that all management structures capable of doing so can acquire fuel and sell it within the country.

Expanding and restructuring the management of the service station network, including mobile service stations. To this end, establish service stations managed by various economic actors, integrating photovoltaic systems with battery storage, so that they become independent of the national electricity grid, and encourage the installation of charging stations to market this service for electric vehicles.

Some approaches are already being implemented: some MSMEs operate service stations, others are applying to do so, to install them. What we are asking is that all those who do so install their own photovoltaic systems so that it is not an additional burden. As for service stations owned by various public entrepreneurial institutions that had been closed for years, so we asked them to take them back and put them back into operation.

Design financing lines, ease conditions, and expand guarantees for granting credit to legal entities and individuals to stimulate the energy transition and demand-side investment.

Allow public companies to use foreign platforms to make payments for the purchase and sale of fuel.

Apply the 1% physical or financial tax on fuel imports intended for operational stockpiles, so that these funds are primarily allocated to social institutions.

Reduce taxes by an amount equivalent to the investment made by economic actors, whether public or private, who, as part of their social responsibility, invest on their own initiative in renewable energy sources for community, social, or healthcare service centers, including public lighting. We know that several MSMEs and other actors have implemented systems for polyclinics, funeral homes, and banks. And to encourage this, what do we propose? Anyone making this type of investment will be able to deduct this amount from their taxes.

Regarding food production, which is another priority included in the Government Program under its General Objective No. 3, the following changes have been considered:

Modifying land management and use for all economic actors, while clearly maintaining the principle that land belongs to the entire population.

The real right of usufruct over land is granted to legal entities—public, private, mixed, or natural—that request it, for an indefinite period and for the area or land claimed in their submitted and approved project. This applies to all agricultural, livestock, forestry, and tobacco production, as well as to ecotourism and agritourism development projects.

This has an impact on the proposed law concerning land use and ownership; in other words, the limitations it imposes will need to be broadened somewhat. But one concept must be clear: we cannot continue to impose obstacles and limitations on those who are willing to make the land productive.

We must allow the state-owned enterprise that manages the land, the socialist property of all the people, to grant usufruct rights to applicants through the corresponding contract, in accordance with legal standards. This is something it cannot currently do. Today, companies, and even cooperatives, are responsible for managing this land on behalf of the state and the people; however, granting usufruct rights involves cumbersome bureaucratic procedures with higher authorities. From now on, they will be able to do so directly.

We must also allow the agricultural production cooperatives that manage the land to grant usufruct rights, but only after approval by the cooperatives' general assembly and in accordance with applicable legal regulations.

Eliminate the obligation for usufructuaries to work the land directly and sustainably. Currently, someone with the necessary resources who requests land and wishes to hire people to cultivate it cannot do so if they own another business, because they are required to be physically present on the land, even if they can finance and import the inputs. We are therefore eliminating this prohibition: anyone who requests land and can hire people and import the inputs to produce more efficiently will be allowed to do so.

Evaluate the definition of "worker collectives," a formula currently used in agriculture, where it works well in some cases and not in others. The idea is to reorganize this as a productive method and propose the structural transformations that this requires.

Transform the management model of cooperatives, allowing them to directly import and market the fuels they need for their own use.

Allow cooperatives to engage directly in foreign trade, enabling them to export products and import agricultural inputs and technologies without needing to go through a higher authority.

Allow cooperatives to directly manage external financing intended for import-substitution exportable production and investments.

Currently, for example, funding from an international fund sometimes has to go through Havana, where intermediaries are sought to ensure it reaches the cooperative that will implement the project. As a result, some of this funding is used for this purpose, and not necessarily for production.

Allow cooperatives to open foreign currency accounts with foreign and Cuban banks.

Streamline agricultural marketing and recognize the market's role in price formation.

Decentralize and empower public and private sector entities, cooperatives, and all producers to set agricultural product prices.

Contracts concerning agricultural products and their prices will be negotiated between the producer and the buyer.

Approve the tax regime applied to all economic actors who produce, process, and market food products; thereby incentivizing all producers.

Create the National Agricultural Product Price Information System by publishing reference prices on various digital platforms.

Develop incentives to encourage all economic actors to market agricultural inputs in foreign currency and pesos and to have access to the foreign exchange market.

Authorize all economic actors to engage in direct trade.

Promote the creation of foreign currency input markets, involving both national and foreign individuals and legal entities, by simplifying the procedures.

Approve a special tax regime for all economic actors participating in these markets, with incentives and subsidies.

Establish banking procedures to ensure the execution of foreign currency transactions for the sale of inputs to producers and payments to foreign suppliers, using magnetic cards, transfers, cash payments, e-commerce, and other authorized payment methods.

Increase financing for the primary production sector by expanding and decentralizing the Agricultural Development Fund across the country and by creating an agricultural development bank.

Decentralize the use of the Agricultural Development Fund to municipalities, adapting it to the specific characteristics of each territory, after submission of food production projects that contribute to the Development Strategies.

The humanist vocation of the Cuban Revolution places human beings, their well-being, and their development at its core and most important objective. Therefore, in developing these proposals, we consider the following social transformations essential:

Digitizing and making aid management transparent through the use of the Soberanía platform to update the registry of vulnerable individuals and families in real time and to systematize the various forms of support, their traceability, and public and governmental oversight.

This will be facilitated by the recent update based on visits to individuals identified as being in situations of multidimensional vulnerability, so their numbers are already known.

Stipulating that all economic actors, public and private, national and foreign, within the framework of their social responsibility at the community level, in the financial sector, and in the areas of material resources and services, participate directly in the following activities. (Today, it's businesses and SMEs that are doing this. We're not asking for it to be mandatory, but we all need to be aware of it and ensure that all economic actors in the country can participate and support these social institutions.)

So what are these activities? Contributing to pension payments through agreements with banks.

Seniors—and this is an unresolved problem today—have great difficulty accessing their pensions on their credit cards to obtain cash for basic purchases. Therefore, there are initiatives underway to reduce their travel and waiting in line: an SME, a self-employed individual, or a company pays them the corresponding amount in cash, and the bank grants them a tax deduction.

Supporting the Family Support System (FSS) canteens and community food banks. We agree that a micro, small, and medium-sized enterprise (MSME) may, if it so chooses, manage a social and solidarity economy (SSE) center, maintaining services for the elderly and selling them other goods for its own profit, provided that it maintains the social purpose and the attention given to these individuals.

Support homes for children without parental care.

Support homes for the elderly, homes for pregnant women at risk, homes for grandparents, and other social centers.

Establish differentiated rates, discounts, or even free services, or solidarity vouchers for vulnerable individuals.

Assist individuals experiencing multidimensional vulnerability as identified by local authorities.

Support social and medical transportation.

Support public health facilities and educational centers.

Contribute to community hygiene and sanitation in critical areas.

Allocate basic necessities to social institutions.

Create basic monthly programs for vulnerable individuals and families.

Provide employment, training, and apprenticeships to vulnerable individuals.

Establish local emergency funds through private contributions.

Convert private premises into emergency collection and distribution points.

Support families without resources to cover funeral expenses.

Promote community fairs and sales in vulnerable communities.

Strengthen social work through a proactive and preventative approach, giving it the necessary hierarchical structure within municipalities.

Provide small-scale resources so that individuals experiencing multidimensional vulnerability can engage in non-public activities, find employment, and overcome their circumstances. This is not about providing stimulus, but about assisting those in need and integrating them into society. For example, if you have a space available, you could say, “We’re offering you this space so you can sell something, earn some income, and support yourself.” Or, you could sell them an electric motorcycle or a tricycle to transport people. This kind of thing would allow this person to be integrated into a public service and meet their needs.

Develop educational, training, postgraduate, cultural, and other services that would generate revenue for the social sector.

Develop differentiated pricing for childcare. Currently, the fee is symbolic, and we charge the same for low-income individuals as for higher-income individuals. This would apply to both daycare centers and semi-residential facilities, based on family income.

Develop tax incentives for workshops where people with disabilities work, to encourage them to increase their personal income.

Given the need to move forward with the elimination of subsidies, the following transformations are proposed:

Eliminate product subsidies, transform them into subsidies for people, and implement this gradually, starting with products that cut across the economy and influence production and services. This requires shifting real costs to wholesale and retail prices.

To ensure that those in need receive support, a social protection fund will be created in addition to the social welfare budget as a prerequisite for these transformations. This fund will be based on the savings generated by eliminating these subsidies for business products, which can then be sold at higher prices. Therefore, the money saved in the budget will be used to create a fund to subsidize those who need it.

Another area where we propose transformations is labor and wages, and I will now address this:

Since the least protected sector is the budgeted sector, it is proposed to implement a comprehensive wage reform in this sector, which will have a broader impact. Let me explain:

This measure primarily benefits a sector that includes 51% of all workers in the country, and where even the social sectors, achievements of the Revolution, are concentrated.

It was therefore decided to increase the minimum wage, which is currently 2,100 pesos, to 3,210 pesos. While we acknowledge that this remains insufficient, it represents a 53 percent increase, based on the actual resources available to us (applause). This amounts to 42.5 billion pesos, but it is a first step that we have no doubt will have a positive effect.

Its implementation applies to all salary brackets; this increase of over 1,000 pesos affects every salary bracket in the entrepreneurial system, which represents 51 percent of the workforce.

This decision will be implemented starting in July, so workers will receive the corresponding increase in their August pay.

Why did I mention broader scope? Because, although this measure covers the entire public sector, it will have a beneficial effect on the business sector. Since companies will now have the ability to set their own wages and salary scales, they will be obligated to take this increased minimum wage into account. Any company basing its wages on the current minimum wage will have to increase the wages of all types of economic actors by 53 percent. No one in Cuba can earn less than the minimum wage. Therefore, the entire public sector system, and even the non-public sector, must be reviewed now to ensure that no worker is left without protection or disadvantaged by this decision.

Another important and transformative element that will be established as policy is to define the minimum wage for the following year each year, based on the country's resources and inflation.

Consequently, the amount of Social Security benefits and pensions must also be defined.

The planned increase will have a positive effect on pensions, as well as on wage increases based on inflationary trends.

Regarding the Social Security pension system, the following should be established:

Remove the ceiling set for the social security contribution scale in the non-public sector. Anyone wishing to contribute to social security beyond the current scales will be able to do so, resulting in higher monetary benefits.

Ensure that workers in the public and non-public sectors with multiple jobs can contribute according to the scales set for each job and receive the corresponding benefits.

Reduce the minimum 30-year service requirement for the contributory scheme to a maximum of 10 years if the individual dedicated that time to family care.

This measure is justified by the country's complex demographic situation: policies have been approved to encourage support for those in need; Therefore, people caring for a family member or a sick person will be able to count those years as work and include them in the required thirty years of social contribution.

Eliminate the administrative approval process for second jobs for technicians, healthcare professionals, researchers, teachers, professors, and civil servants who choose to do so; standards will need to be specified and implemented in certain sectors where the work has particular characteristics.

Establish incentives to retain skilled workers, with a focus on young people and women, who represent a significant pool of potential employees in the country.

Establish a monthly income equivalent to a minimum wage – to be repaid once employed – to enable young people aged 18 to 30 who are not in education or employment to attend a preparatory course or training program. This funding will be provided by the budget if the young person subsequently works in a budgeted unit, and by the company if they are required to work in one. The large number of people disconnected from education and employment is one of our most serious problems, and we must continue to make progress so that all teenagers and young people can pursue education, and those who are able to work can do so. This proposed monthly income should enable them to receive training and find employment.

Authorize employers, in agreement with the trade union, to set reduced working hours with corresponding pay for professional activities – other non-professional activities will also be included – that are covered by the collective agreement.

Life has shown us, especially in the current circumstances, that it is not sensible in many jobs to require people to be physically present for eight hours at a time, and that the same results and functions can be achieved without full-time presence, after agreement with management and the union.

Establish, within the business and budgetary sectors, that employees of the entity itself can engage in other professional, technical, construction maintenance, etc., activities. If an economist in an office, for example, has knowledge of electricity and plumbing and is capable of performing a repair, they will be paid extra for this work.

Allow remote work. Often, people who travel abroad for various reasons request that remote work allow them to continue developing projects and fulfilling their employers' assignments.

Include pursuing studies abroad for personal professional reasons as a valid reason to suspend social security obligations, in agreement with the employer. Thus, a graduate in a position can agree with their employer to pursue a master's degree abroad and further their professional development.

Authorize workplaces to directly determine which workers they are terminating their relationship with for economic, technological, and structural reasons, following an evaluation by the collective management body, in agreement with the union, and after review of the case by the assembly of members and workers. These workers, whom the company decides to no longer employ, will receive financial protection equivalent to a minimum of three times and a maximum of six times their base salary, depending on their position, until they can resolve the situation.

Establish protection equivalent to one month's salary for employees of self-employed workers who are currently unprotected. If a self-employed worker hires someone and tells them, "Don't come tomorrow," that employee is left without protection. The employer will then be obligated to pay them at least one month's salary as a safeguard.

The banking and financial system requires profound modernization, particularly for the effective implementation of these transformations. That is why we propose:

Promote private capital participation in banking. This includes:

Expansion of banking and non-banking financial institutions by private companies, cooperatives, and foreign investors, using commercial and universal banking licenses.

Private banks will operate under the supervision of the Central Bank of Cuba, with the same regulatory conditions as public banks.

Authorize the creation of non-banking financial institutions to support the banking sector with domestic and foreign private capital for the purpose of providing microloans.

Remove restrictions on foreign currency payments between foreign-owned businesses and their domestic suppliers. Currently, any foreign investor purchasing goods or services from a domestic supplier must pay in foreign currency.

Authorize the opening of foreign currency accounts by legal entities and individuals without prior administrative authorization. The current cumbersome process involving various ministries will be eliminated.

Implement the regulatory framework for virtual assets and the use of financial technologies, and extend their use to international and domestic cash collection and payment transactions. Create dedicated financial entities specializing in virtual assets.

Update the interest rate system to reflect current economic conditions, including sovereign bonds.

Revitalize the role of bank lending as a core function of the economy, diversify collateral and define its enforcement mechanisms, establish credit limit standards per customer, streamline approval processes, and create new products, among other actions.

Issue bonds on foreign financial markets in currencies other than the US dollar.

Introduce new platforms that complement the financial market, prioritizing the securities market and the central securities depository.

Develop new, high-quality products and services for each sector, supporting financial innovation. Establish the role of a "last-mile payment agent" to formalize family money transfers through a private channel.

Develop alternative ways to capitalize banks, in addition to state budget resources.

Update the external debt management strategy with a new approach, taking into account the complexity of current conditions.

Accelerate the automation of banks and reduce the administrative burden associated with their services, as demanded by the public.

Grant Transfermóvil a license as a non-bank financial institution.

Complete the elimination of limits on bank transfers and withdrawals by individuals and legal entities, both domestic and foreign. Another demand is the 5,000-peso limit. Open everything up.

Other transformations in the banking and financial sector concern the foreign exchange market. In this regard, the proposals are as follows:

Resize the official foreign exchange market, based on all these decisions, as well as the remittance market, with the participation of non-public economic actors, including the granting of licenses for private exchange bureau operations.

Create a real-time digital foreign exchange market with authorized agents.

Implement a foreign currency auction system, which is practiced in all countries and which we can also implement with all market participants.

Carry out successive devaluations of the national currency to reduce exchange rate differentials. Companies that cannot withstand the devaluation will be liquidated. This measure aims to abandon the 1:24 rate, which is no longer relevant. We cannot make large leaps in exchange rates. Why? Because this impacts inflation, but successive devaluations will be implemented, meaning that this 1:24 ratio will be adjusted to more closely reflect reality.

This includes incorporating Segment III, the one proposed by the Bank, at a rate of approximately 500 pesos or slightly more, for the diplomatic sector, public MSMEs, and foreign investors operating under non-public management arrangements, while guaranteeing the absence of arbitrage. What does this mean? If you go to the market and can sell dollars at 500 pesos, there's no reason why the electricity service provided to that joint venture should be subsidized at this 1:24 ratio. Therefore, anyone accessing the service should also pay for it without subsidies.

In the case of businesses, which we wish to level the playing field, they will operate freely on the various foreign exchange markets for sales, and in a controlled manner for purchases.

Create public and private non-bank financial institutions tasked with channeling financial flows, including family remittances, through foreign exchange transactions.

Establish one-stop shops for foreign exchange for all economic actors, as decided.

Expand the corporate purpose of a non-bank financial institution that would offer trust services for the administration of funds from international cooperation.

The decentralization of universities and the promotion and consolidation of economic actors imply transformations in the tax system:

To this end, we intend to improve consumption taxation through the gradual implementation of Value Added Tax, known as VAT. It will begin with certain production-consumption chains and will consider reducing tax rates on products within the basket of goods and services.

This will gradually correct the distortion of applying taxes to the same product throughout the entire production and trade chain.

Establish electronic tax invoicing with incentives to encourage taxpayers to use it effectively.

Implement a sales and services tax credit based on the level of banked sales. There is a comprehensive program to modernize banking services, a necessary process that has not been successful, hence these proposed reforms to encourage the use of banked sales.

Reduce the tax burden on the business sector as income tax, with the aim of increasing their growth and investment capacity. Broaden the tax base by eliminating economically unjustified special tax breaks and reducing the risk of tax evasion.

Establish a tax on gross income for companies that report losses for two consecutive years. This phenomenon is steadily increasing. Many MSMEs that declare losses do not pay taxes. This situation must end; a special tax must be introduced, or the MSMEs must be liquidated.

Apply a reduced tax rate on agricultural profits to further facilitate and stimulate production.

Simplify the calculation and payment of profit taxes by eliminating the per capita tax, which applies to members of all types of cooperatives.

Develop an accelerated depreciation scheme for the acquisition of machinery, food production technologies, and industrial processing equipment to facilitate the recovery of these investments.

Reduce the financial burden on entities, determined by the contribution of returns on public investment, which is contingent on its use for development and capitalization. This burden amounts to 60% of the economic system, which is considered high. The measure aims to reduce this financial burden, but the retained funds will be used for the development and capitalization of the businesses themselves.

Apply tax incentives to public and non-public economic actors who finance investments in the social sector. I've already mentioned those who install solar panels, etc., but here, it would refer to any management entity that decides to contribute to the repair of a school or hospital; in this case, we would allow them to deduct these expenses from their taxes.

Update personal income tax to reflect the current inflationary context through the following adjustments:

Modify the progressive tax scale for calculating and paying the annual tax. Reduce the number of tax brackets to standardize tax application.

Increase the minimum tax-exempt income to the level of the national average wage by the end of 2025. Currently, wages are low, yet taxes are high. These measures will reduce personal income tax.

Reinstate the simplified tax regime for less complex activities, using an automatic adjustment system based on annual gross income levels. This will allow the National Tax Administration Office to focus its efforts and oversight on higher-income taxpayers with greater contributions.

Increase the following taxes: road transport tax, based on vehicle type, value, fuel type, and other factors; boat tax; document tax; environmental taxes; and the rate for filing commercial advertisements.

Develop customs tariffs and incentives that promote domestic production processes and the importation of raw materials, materials, technologies, and equipment for renewable energy sources. It is essential to better incentivize anyone importing raw materials and technologies to increase domestic production and contribute to national development.

One of the issues with the greatest impact on the population remains prices. Therefore, you have likely noticed that these proposed reforms, particularly those concerning economic actors and productive activity, focus on prices.

Furthermore, decentralizing the power to approve prices and tariffs to businesses and local and regional governments is being considered. The central government will no longer be responsible for approving price caps.

Eliminate price formation by the expenditure method and establish a reference price based on the market or correlation, marking its position in the value chain.

Let's now turn to the transformations of foreign investment, a sector in which incentive measures are being implemented to promote greater integration into the economy. The following transformations are proposed as new incentives:

Stimulate foreign investment participation in private companies, which is currently prohibited. In other words, a foreign company will be able to form a joint venture with a micro, small, and medium-sized enterprise (MSME) or a private company, or enter into international economic association agreements or other already authorized arrangements.

Extend the term for granting surface rights to 99 years. Until now, this right has been limited. And investors were saying: "I'm coming to invest in Cuba, it's complicated; so how am I going to recoup my investment?" Well, in the case of foreign investment, we extend this limit up to 99 years, and the right of usufruct for more than 50 years.

Allow businesses where foreign capital enters, under all accepted terms, to open bank accounts abroad, which is today a reserved procedure subject to authorization. Of course, in all cases, this opening must be notified to the Central Bank of Cuba and the National Tax Administration Office for payment of the corresponding taxes.

Allow real estate businesses to carry out purchase and sale operations of residential units. Until now, only rental was allowed.

Remove the obligation for the foreign company to use a public employer to select and hire staff; from now on, it will be able to freely hire its workers without the mediation of a third party.

Allow foreign investors to have their income in foreign currencies, to operate flexibly in an environment of partial dollarization of the economy and allow their access to the foreign exchange market.

Reduce documentation and deadlines; decentralize the approval of foreign investments, which includes the application of “positive administrative silence”. In other words, speed up all procedures and all consultations: if the entity consulted does not respond, it is because it agrees.

This “positive administrative silence” will be applied to all authorization processes in the country relating to the issuance of licenses for economic, financial and commercial activities, with a direct effect on registration activity.

Allow foreign investment in Old Havana and other heritage areas where it is not permitted today.

In the field of foreign trade, it is planned to transform its management; To this end, it is proposed:

Promote exports of goods and services whose total value will increase thanks to the decentralization of export faculties, differentiated incentives and productive integration with foreign capital, and thus sustainably achieve a surplus trade balance in goods and services. The current intervention of state-owned import-export companies has proven to be a bureaucratic and ineffective mechanism in most cases. Consequently, all current management modalities will be able to import directly.

Apply the principle of negative tariff classification to companies engaged in foreign trade, including foreign investment. Instead of asking them, "What are you asking for? You can do this, you can do that...", we will establish a list of what they cannot import, meaning they will be able to import everything else.

Allow private companies and cooperatives to directly engage in foreign trade activities, with prior authorization from the Ministry. This is what I explained earlier: all private companies and cooperatives will be able to export and import directly.

Approve that scientific institutions can sell trademarks and patents on the international market.

Another issue that raises legitimate concerns is the partial dollarization of the economy, which remains necessary under the current circumstances. Therefore, we must:

Extend the scope of this partial dollarization to include business-to-business transactions, in accordance with the current situation.

We propose modifying the current closed, self-financed foreign exchange mechanisms to a contribution mechanism based on each company's foreign exchange transactions.

Furthermore, one of the sectors most affected by the reinforced embargo is tourism, which has had to paralyze its operations in most tourist hubs. Secondary sanctions have recently been imposed, leading to the withdrawal of international hotel chains from the country. Therefore, we propose the following:

Adding to the existing business structures in the tourism sector—namely, joint ventures and management contracts—for all tourism activities, the following: leases, the granting of usufruct rights for valuable consideration, the concession of areas with existing or developing assets in various regions of the country, and the sale of real estate. In the latter case, the sale must be approved on a case-by-case basis, whether involving foreign investors, Cubans living abroad, or Cubans residing in the country.

Include in the Investment Project Portfolio specific areas of the country designated as Economic Development Zones, where special incentive schemes will be established.

Allow the application of all business models on the cayes where they are currently restricted; in heritage areas, as previously mentioned, such as Old Havana or Trinidad; and in all tourist destinations where these models would benefit the sector and whose development requires foreign investment.

Also allow real estate development in all tourist areas of the country where this type of activity is necessary.

Establish the possibility of developing real estate businesses in areas of the city of Havana where they are currently prohibited, and in other urban areas of the country linked to tourism, without any restrictions beyond those already established.

Allow the use of joint ventures and leasing arrangements for the negotiation of tourist marinas, where they are also restricted.

Grant all economic actors tariff and tax advantages for ecotourism projects and other forms of specialized tourism, with the aim of attracting foreign investment and diversifying sustainable and responsible tourism development.

Create an online investment bank for the tourism sector with international connections that promotes virtual asset services.

Authorize car rental activities, currently reserved for two domestic tourism companies, to be open to other state-owned enterprises, foreign investment, and non-state-owned entities capable of investing in, purchasing, and renting cars.

Authorize joint ventures, wholly foreign-owned companies, and non-state-owned entities to establish travel agencies.

This will lead to the creation of private tour guides and sales agents, subject to certification and authorization due to the high level of specialization required for this role.

Approve the existence of local destination managers capable of integrating all stakeholders and ensuring the effective operation of the mixed governance model. Several regions of the country—Viñales, Trinidad, and others—already have significant public tourism activity, in some areas surpassing that of the private sector, and managers are needed to integrate this entire tourism product.

It is proposed to consider the implementation of a special tax, currently nonexistent in the country, or a levy on all those involved in tourism in one of these areas or hubs, and to allocate these funds to the sustainability, promotion, and image of tourist destinations.

Today, people have invested in these resorts, renting houses, owning restaurants, and all sorts of other businesses, yet it is the State, specifically the Ministry of Tourism, that is responsible for promoting the destination, covering expenses, garbage collection, and the ongoing maintenance of all the infrastructure. This tax exists in all countries, in Mexico, for example, where tourism institutions must contribute to the promotion and sustainability of the resort, the tourist destination in question.

Promoting the franchising of Cuban brands abroad as a way to generate revenue would essentially mean bringing the "Casas Cuba" (Cuban Houses) out of our country, showcasing all of Cuba's potential in terms of culture, crafts, products, and so on. Examples include Casas del Habano, Bodeguita del Medio, Floridita, and Tropicana, among others. There are other countries where this type of franchising for tourism is already operating and generating revenue.

Another sector where we are proposing changes is transportation:

To this end, we propose removing the restrictions on vehicle purchases by various economic actors, including individuals, as well as the time limits, to stimulate electric and solar mobility.

What does this mean? The current limit is six vehicles. However, SMEs have grown and need to transport goods, raw materials, and passengers, but we tell them: no, you cannot buy or import more means of transport. Therefore, we are lifting these limits, but we are incentivizing those who import electric vehicles through customs and tax exemptions.

This also applies to individuals who, without using an importer, can send a motorcycle or even a tricycle directly from abroad, and can also purchase an electric car and ship it directly into the country. And, of course, if this is accompanied by the entire renewable energy system, they will be exempt from taxes and customs duties.

Legal entities, whether public or private companies, will be permitted to make direct commercial imports, currently prohibited, to assemble and sell electric vehicles in the moped, motorcycle, and tricycle categories. If these imports are accompanied by a corresponding charging station with a renewable energy source, they will be tax-exempt.

Several economic actors, including MSMEs, have said: "I can bring containers of motorcycles and disassembled tricycles to Cuba for assembly, and I can even do this in partnership with a public company... So we will allow them to sell them to any individual, legal entity, etc."

Let's now turn to the transformations in commerce, restaurants, and services, a sector undergoing profound changes with the majority participation of other non-public management models.

In light of the above, it is advisable to:

Modify the policy regarding the public administrative management of commerce, food services, and other services, prioritizing non-public management methods and foreign investment for the promotion, development, and management of these activities.

Reorganize the wholesale sector, prioritizing the creation of supply markets directly accessible to individuals and legal entities. Do not restrict the actors involved in this activity.

Authorize foreign entities established in the country to sell goods and provide services. Currently, there are joint ventures that would like to engage in wholesale and retail sales but face limitations. Therefore, grant this freedom to branches and representatives who request it.

Create chains of stores, restaurants, and light-food networks based on established brands or new ones created locally, expanding throughout the country. We will therefore allow SMEs and foreign investors to establish restaurants, snack bars, burger joints, or any other type of establishment, in order to expand services to the population.

Similarly, we will invite foreign brands of light food products, which are numerous worldwide, to invest in Cuba and expand their chains.

We will put amusement parks, zoos, aquariums, protected areas, and housing units out to tender to public, foreign, private, and cooperative companies, setting the conditions for their operation, including services to the public. This will require guaranteeing service in the national currency, even after authorization for the sale of a portion in foreign currency. However, we must increase the number of stakeholders involved in the management of these recreational and service institutions, which are not currently operating under optimal conditions.

We will formalize the existence of vendors within communities according to existing regulations, by creating a street vendor's permit and implementing a simplified tax system. This figure already exists; we simply need to recognize it.

Stimulate public wholesale and retail procurement, using the public procurement budget and bank loans as operating capital.

Create an automated, auditable, and publicly accessible digital system for tendering premises and assets to all economic actors. This is essential: given this opening to new management methods, the tendering and awarding process must be transparent and fair, ensuring the government truly benefits in order to invest in all its social programs, and it must be auditable and transparent.

Move from a regulated consumer basket to controlled sales without subsidies within the retail network.

We are not giving up, we are not abandoning the regulated household shopping basket, but current conditions have imposed limitations and prevent us from guaranteeing monthly deliveries of goods. In any case, we are unable to sell as subsidized not only the items we have to buy from abroad, but even those produced domestically. However, we will at least ensure that they are sold in a controlled manner so that all families have access.

Authorizing individuals to make commercial imports, by imposing customs duties in foreign currency, does not imply granting commercial privileges. This is a fairly widespread issue; many people arrive here with suitcases full of specific goods, all without any controls or taxes. We will therefore recognize this situation, which will expand access to products, many of which are in high demand.

The insurance policy also requires changes in the current context. Therefore, we propose the following:

Recognize the profitability of the financial resources mobilized in the insurance sector. Insurance generates revenue; it has capitalized income that can be used for financial engineering.

Create life insurance to supplement social security coverage. This implies broadening the concept of this insurance so that you can be insured not only for the day you have an accident, but also to receive benefits upon retirement, in addition to your pension.

Strengthen the marketing of foreign currency insurance policies as protection against risks related to transportation, travel abroad, etc.

Regulate mandatory comprehensive insurance. Every driver of a vehicle must be insured to guarantee civil liability.

A crucial area, which is also one of the pillars of government management, is digital transformation, which includes issues related to artificial intelligence and the knowledge economy. We propose:

Creating a national technology hub for software, hardware, and artificial intelligence.

Establishing a national framework for mandatory interoperability, data governance, and a national artificial intelligence database.

Using artificial intelligence in public administration, with human oversight and territorial equity.

Implementing a competitive compensation system that promotes the export of professional services in digital technologies and artificial intelligence. We currently have excellent professionals in our state-owned enterprises, but their salaries are not in line with the average in other non-public sectors, and this issue needs to be addressed.

Allowing foreign investment to expand ETECSA's data center capacity.

Allowing the private sector to provide data center services that do not host the country's critical infrastructure management platforms.

Enable the manufacturing of equipment, as well as the installation of mobile and fixed networks, triple-play services, data centers, cloud services, IP telephony, and contact centers.

Establish a digital platform using artificial intelligence for the public procurement system and tenders, which guarantees transparency and security and includes risk classification.

Enable integrated management of postal infrastructure and last-mile logistics.

Recognize data as the fifth factor of production, alongside land, labor, capital, and entrepreneurial capacity. This implies that data is considered a non-renewable economic resource capable of generating wealth.

The national statistical system must be modernized to reflect these transformations:

We have designed a statistical system that adapts to economic and social changes.

Complete the change in the base year for the national accounts.

Revise the construction of the producer price indices and the foreign trade indices, and continue to link the consumer price index to the products derived from observed prices.

Comrades:

What has been presented so far requires a profound transformation of the control and inspection mechanisms due to their importance and cross-cutting nature. Therefore, the following has been approved:

Establish a working group, to be led by the Party Central Committee and composed of representatives from the various institutions involved in these control matters, to analyze all existing control mechanisms and propose changes in their design, as well as strengthening the structures involved.

Another highly complex issue addressed was the creation of a working group tasked with studying the effects of these transformations on the legal system. To this end, all legal norms published in the Official Gazette of the Republic since 2019 were evaluated, and additional norms related to the topics presented here were selected.

In addition, artificial intelligence tools were applied, the results of which were overseen by the leadership of the National Assembly, the Supreme Court, and the Ministry of Justice. These tools determined, in principle, that the proposals made here are referenced in nine articles of the Constitution of the Republic and therefore do not require amendment.

It was preliminarily identified that the implementation of these transformations affects more than 148 provisions of the Cuban legal system: 15 norms to be repealed; 22 to be completely amended; 79 to be partially amended; and more than 50 supplementary provisions, resolutions, etc.

Furthermore, 32 new higher-level regulations will need to be drafted: 10 laws, 14 decree-laws, and 8 decrees.

This matter has been analyzed to ensure that the National Assembly leadership can conduct this process within its established framework and the powers of this body, so that progress can be made in implementing these reforms in light of the current urgency.

Members of Parliament,

I cannot conclude without first reaffirming that the defense of the socialist homeland is the absolute priority. We must undertake these reforms without neglecting this premise, knowing that those who disregard this principle will not survive the mistake.

Indeed, the proposed economic and social reforms envision profound changes in accordance with the government's Economic and Social Program for 2026, and respond to the objective conditions of the economy and current socio-demographic trends.

These two documents—in other words, these proposals and the Government Program—are complementary, a fact reinforced by the fact that 76% of these transformations correspond entirely to the content of the Program, while the remainder broadens its scope.

They simultaneously incorporate transformations of the business landscape, greater openness to domestic and foreign private capital, banking modernization, coherence between exchange rate reform, banking reform, price reform, and tax reform, a pragmatic approach to addressing partial dollarization, territorial decentralization, and the downsizing of the central government administration.

These transformations do not imply a renunciation of the state's social responsibility and recognize market mechanisms as instruments for the efficient allocation of resources.

The following points have been identified as challenges for political leadership, in line with the technical discipline required by the transformations: development of an operational implementation sequence; appropriate timing; institutional capacity and understanding in key areas; social protection; political and legal legitimacy; citizen participation; and mitigation of risks and impacts on the geopolitical environment.

Contradictions will arise in their implementation that will need to be addressed: partial dollarization and its effects on devaluation; the elimination of subsidies and their link to prices, for which effective social protection must be guaranteed; the decentralization of powers to municipalities without the latter being able to assume this responsibility; and the liberalization of agricultural prices without sufficient or increased production.

Where necessary, previous models will be analyzed to identify risks and mitigate negative impacts. This proposal is therefore not rigid. During the implementation of these transformations, monitoring will continue, and corrective actions will be adopted, along with a learning system for key managers and leaders.

These proposals aim to address the crisis and open a window for transformation. Failure to implement these changes at this stage could have irreversible consequences for the political and social order.

I wish to reiterate that these transformations do not represent a deviation from the socialist project; on the contrary, they are consistent with its development. Cuba is in the historical period of building socialism, guided by the ideas of Fidel and Raúl. [GUS BOLD]

As the Army General stated, these proposals are based on the principle that the essential objective of updating the Economic and Social Model is to improve the quality of life of our compatriots, with every Cuban man and woman contributing their best to building the prosperous and sustainable socialism that our people deserve.

Long live free Cuba! (Cheers.)

Long live Fidel and Raúl! (Cheers.)

Homeland or death!

We will prevail! (Chants of "We will prevail!")

Thank you (applause).

(From Soberanía)

http://www.cubadebate.cu/especiales/2026/06/21/manuel-marrero-cruz-la-planificacion-socialista-no-excluye-sino-que-debe-

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