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Cuba approves free-market reforms in effort to stave off economic collapse

Cuba approves free-market reforms in effort to stave off economic collapse

Summary

Cuba's lawmakers approved nearly 200 free-market reforms to reduce the government's control over the economy and attract investment amid a severe crisis worsened by a U.S. oil blockade. The changes allow private and foreign investment in state industries and mark the biggest economic shift since the 1959 revolution.

Key Facts

  • Cuban Prime Minister Manuel Marrero introduced 176 economic reforms to reduce state control and encourage investments in areas like banking, tourism, and agriculture.
  • Foreign investors no longer must create joint ventures with the Cuban government, and big private businesses will be allowed.
  • The reforms were passed unanimously by Cuban lawmakers during a session where President Miguel Diaz-Canel reaffirmed commitment to socialism.
  • The U.S. oil blockade, imposed in January under President Trump, has pushed Cuba’s economy toward collapse with shortages and long power outages.
  • Diaz-Canel acknowledged internal problems like bureaucracy and delayed decisions that hurt production, in addition to external pressures.
  • The United Nations warned that shortages of medical supplies have led to child deaths in Cuba.
  • U.S. officials, including Vice President JD Vance, said Washington wants Cuba to become prosperous and are discussing political and economic changes with Cuban leaders.
  • Recent U.S. actions include indicting former Cuban President Raúl Castro and diplomatic talks aimed at expanding political dialogue.
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