Marrero Cruz: “These transformations do not constitute a deviation from the socialist project; on the contrary, they respond to the inherent logic of its development” 

(Shorthand Versions - Republic of Cuba)

Comrade Army 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 Deputies;

Fellow Cubans:

As we all know, our country is facing one of its most complex moments since the Special Period. A combination of unprecedented U.S. coercive measures against Cuba has been implemented, even leading to the interruption of fuel supplies and all sources of foreign currency revenue. This has logically had a significant impact on the deterioration and instability of the energy infrastructure and, consequently, on the quality of life of millions of Cubans.

We have never denied our own errors and shortcomings; however, this set of factors has consistently influenced the effective implementation of the transformations to our Economic and Social Model, approved at the 6th Party Congress in 2011. These transformations yielded positive results until mid-2019, when the U.S. government substantially intensified its sanctions policy, which was further reinforced in early January 2025.

In this context, the Party and the Government, in the legitimate exercise of their sovereign power, have been promoting measures to reactivate the economy and correct distortions, a process that has been strengthened by the approval of the Government's Economic and Social Program, validated by our people through popular consultation.

In the current scenario, taking this vital force, this popular sentiment, as our direct reference point, we have decided to propose transformations of strategic impact on the nation's Economic and Social Model, without this implying a renunciation of preserving the principal achievements of the Revolution.

The transformations we will present find their primary foundation in the thinking of the Commander-in-Chief, not as a renunciation of the construction of socialism, but as a condition for its preservation. In 1993, in the midst of the Special Period, he warned: "Today, life, reality, the dramatic situation the world is experiencing, this unipolar world, compels us to do what we would never have done otherwise if we had had capital and if we had had the technology to do it."

Without ever abandoning socialism, these transformations have been designed based on the guiding principle of doing what is necessary to preserve what is essential.

The expansion of participation for all economic actors on equal terms, and of foreign investment, or the acceptance of market mechanisms as instruments for resource allocation, do not constitute, under this logic, a capitulation, but rather the sovereign exercise of adapting development instruments to the specific circumstances of the country.

Army General Raúl Castro Ruz, in leading the process of updating the Cuban Economic and Social Model, formalized in the Guidelines and Conceptualization approved at the last Party congresses, bases his premise on avoiding dogmatism and inertia; on rejecting the mechanical association between socialism and egalitarianism; and on recognizing that socialist planning does not exclude, but rather must incorporate and regulate, market rules.

Comrades:

In developing the proposed transformations, the guidelines of the Army General and the First Secretary of the Central Committee of the Communist Party of Cuba and President of the Republic were considered, as well as the Government's 2026 Economic and Social Program, the proposed update to the Conceptualization of the Economic and Social Model, and the resolutions of the Congress of the National Association of Economists and Accountants of Cuba.

The results of consultations with 46 comrades were also taken into account. These included key State and Government officials, heads of national entities, presidents of State Business Organizations (OSDEs), experts and academics, representatives of the Party's and National Assembly's economic commissions, representatives of the National Association of Economists and Accountants (ANEC), economists, and 87 members of the Auxiliary Structure of the Party's Central Committee.

A total of 390 proposals were received, of which 66.7% were accepted. The remaining proposals correspond to the subsequent implementation process, other positive assessments of the document, and aspects that do not constitute transformations per se.
As a result of the analysis of the proposed transformations made in the Political Bureau, 69 recommendations were incorporated into the document.

Yesterday, as Comrade Lazo stated, a broad debate took place during the Extraordinary Plenum of the Central Committee of the Party, and the proposals and reflections from that debate are being analyzed to enrich this document.

The document presented here includes 176 proposed transformations grouped into 23 fundamental pillars of the country's economic and social life.

Among the main transformations proposed as part of the Economic Management System are those related to the management model of economic actors. Regarding state-owned socialist enterprises, the following decisions were made:

To expand the powers of the state-owned enterprise system so that it operates with greater autonomy and under similar conditions to other economic actors. This includes carrying out any lawful activity, without abandoning its primary social purpose. From now on, any measures approved for other actors will also apply to state-owned socialist enterprises.

To decentralize the power to approve wholesale and retail prices to the state-owned enterprise system. The training will take into account costs, expenses, market trends, value chains, and the vertical and horizontal relationships between different economic actors.

Resize the higher-level business management organizations (OSDEs), excluding state functions and those that are the responsibility of individual companies.

It is essential to understand that the fact that companies are integrated into higher-level business management organizations does not mean they can lose autonomy in their management and operations.

The OSDEs (Superior Organizations of Business Development) will be empowered to create state-owned enterprises and micro, small, and medium-sized enterprises (MSMEs), and, in turn, the companies themselves will be empowered to approve their subsidiaries and state-owned MSMEs. Both actors—the OSDEs and the companies—will be empowered to decide on mergers, dissolutions, liquidations, and other organizational changes, as appropriate. 

Currently, all these powers are centralized in the Ministry of Economy and Planning.
Furthermore, the OSDEs will be empowered to define their own structures and staffing levels, as well as to group administrative positions or subcontract services.

The established procedures for companies to approve the allocation of profits after taxes will be made more flexible.

The functions and powers of the Governing Boards will be updated to make their operation more flexible.

Allow access to the foreign exchange market under the new conditions resulting from the implementation of these transformations for business entities participating in supply chains.

The definition of salary scales is decentralized for the business sector. Salary levels negotiated with workers, with union participation, will depend solely on the companies' economic and financial capacity.

It is proposed to change the relationship between the State Budget and the business sector, including the review and gradual elimination of the financial burden and subsidies to businesses.

To give an idea of ​​the scale, the State Budget subsidizes the business sector with 92.5 billion pesos; of this, 50% is exclusively allocated to subsidizing electricity rates.

Provincial Governments and Municipal Administrative Councils are empowered to create, establish, merge, dissolve, and liquidate local state-owned enterprises and other organizational structures. This empowers municipalities to approve state and non-state economic actors within their jurisdiction.

Reduce to the bare minimum the indicators necessary to measure the efficiency of the state-owned enterprise system.

Enable and encourage companies, including private ones, to make financial investments.

Design financial instruments that allow for the capitalization of companies without the participation of the State Budget.

Implement a national program for the valuation and titling of state-owned enterprise assets. This refers to the well-known appraisals as a method to define the real value of our assets, and for this purpose, it is proposed to carry out a national inventory of tangible and intangible assets of the enterprise system with market valuation.

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

Allow state-owned enterprises to monetize underutilized assets through long-term leasing to different actors in the economy and to foreign investment.

It is proposed to design an efficient and competitive enterprise system that generates income to support the services of social sector organizations. This will allow for additional revenue streams, without neglecting the Budget's responsibility to support our Health, Education, Culture, and Sports systems.

Procedures will be established for bankruptcy, liquidation, and asset restructuring in the business sector, addressing sustained losses.

A highly significant business proposal is to transform state-owned socialist enterprises into commercial companies, structured by shares or equity stakes. To this end, the State will define its shareholding in various sectors of the economy, guaranteeing a majority stake in strategic sectors.

State-owned enterprises will be able to purchase shares from other companies; non-state management entities and individuals will also be able to purchase shares, according to a phased approach to be defined. This process will require classifying the companies.

Specifically regarding non-state management entities and agricultural cooperatives, it is proposed to authorize the creation of micro, small, and medium-sized enterprises (MSMEs) and non-agricultural cooperatives pending approval on the economic actors’ platform, a process that has been significantly delayed.

To date, 12,751 non-state MSMEs have been approved, and 7,254 applications are in various stages of processing. Of these, 3,505 have been certified and updated by the applicants—meaning they have been returned—and the remaining applications will be approved during the rest of the month.

The applicants who are updating those 3,505 applications have been asked to resubmit them to us once they are finished, so we can expedite their review and approval. We need to continue adding new actors who produce goods and services.

This will reduce the requirements, procedures, and timelines for the creation, conversion, and operation of non-state management entities, even defining and, in some cases, eliminating the need for administrative approval, thereby minimizing processing times.

Allow the hiring of more than 100 workers. Currently, MSMEs are limited to 100 employees, but exceeding this number will be classified as private companies, not MSMEs.

Allow an individual to own more than one private company. Currently, an individual can only own one MSME; this decision would allow them to own more than one.

Expand the corporate structures under which private companies can be organized, including corporations, as previously stated for state-owned enterprises.

Allow the same individual to hold shares in more than one private company. That is, they can own two or more private companies, but can also hold shares or stakes in several companies or MSMEs.

Grant real rights, usufruct rights, and surface rights to private companies or cooperatives for the purpose of making investments in the development of their productive or service activities. Currently, this is completely prohibited, which is why many businesses operate from people's homes. With this decision, they can apply for land and construct the building they need to develop their business.

Authorize that cash deposits from non-state actors be credited to bank accounts in the same currency in which they were deposited, subject to a declaration of the lawful origin of these funds, but with the right to withdraw that money in the same currency in which it was deposited.

Allow non-state management entities to develop other productive and service activities without abandoning their main activity; that is, eliminate this complementary or secondary business purpose.

Reduce the list of prohibited activities for non-state economic actors.

We are finalizing the update of Decree 107, which currently includes—and remains in effect—125 activities not authorized for different forms of non-state management. As part of this process, which is nearing completion, we have identified that approximately 70 of the current prohibitions can be eliminated.

The decision to streamline and minimize the approval process for these non-state actors will require a review of the Economic Actors Platform, utilizing artificial intelligence to ensure its transparency, traceability, and efficiency at all times.

Transform the institutional structure and the forms of ownership and management of the agricultural sector's productive base. Allow private companies to participate in agricultural activities within this sector. So far, we've seen cooperatives; some producers have over 300 farm workers, yet they aren't organized. This means we must recognize that they are agricultural businesses.

We need to develop an input market with the participation of all stakeholders and with access to the foreign exchange market.

Create a National Platform for Production Linkages that establishes the obligation for companies to publish their needs, projects, input requirements, and subcontracting needs, as well as the granting of tax incentives based on the levels of purchases of national products.

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

First, social ownership of the fundamental means of production is reaffirmed, and progress will be made toward non-state management of these means.

Allow the purchase of shares in state-owned enterprises by state and non-state legal entities, both national and foreign, as well as individuals.

Allow the sale of state-owned properties to national and foreign legal entities and individuals, including Cubans residing abroad, provided that the lawful origin of the funds is demonstrated.

Create an investment program that incentivizes the participation of Cuban companies, both those owned by Cubans residing in the country and those living abroad.

Recognize the legitimate growth of the financial and material assets of legal entities and individuals. It is logical that if we are providing the opportunity to expand businesses, to own more companies, this legitimate growth of both financial and material wealth should be recognized.

It is defined as guaranteeing the protection of labor and social rights without permitting the indiscriminate exploitation of man by man.

Regarding transformations in the economic planning system, the following is proposed:

Improve medium- and long-term planning, focusing on development design and prioritizing macroeconomic equilibrium; reduce structural problems and provide policy signals to different economic actors.

Incorporate the economic, commercial, and service activities of non-state economic actors into the projections of the National Economic and Social Development Plan up to 2030 and into Provincial and Municipal Development Strategies. We have recognized that there is currently no clear control over all of what these actors produce and do, and therefore, this incorporation aims to include them in strategic, territorial, and local planning.

It is vital to transform the planning system based on the powers granted to different actors through these transformations, in the pursuit of material and financial resources. For this reason, a transition to a financial planning model is proposed, where the State progressively relinquishes the physical distribution of resources, giving greater weight to market signals.

State-owned enterprises will have decentralized access to inputs, foreign currency, fuel, and other resources for their production through market mechanisms. The resources the State acquires will be prioritized for all social institutions and services; therefore, the entire state and non-state business system must use its own resources and management to meet these demands.

State orders will be executed through a contractual framework between supplying and requesting entities.

The planning process must consider the satisfaction of domestic market demand; regardless of the actors involved, it is essential to take into account and produce what is demanded in the country.

Maintaining the fundamental balances of the economy. We must have basic control over the balances of agriculture, food, foreign exchange, energy, and the State Budget, transforming them into instruments for diagnosis, anticipation, and policy correction.

Expanding the limits for approving investments through the decentralization of powers to state-owned enterprises, commercial companies, and foreign investment. Based on what? On their own capabilities, both financial and in terms of access to resources. In other words, making an investment less of a burden; if you have the resources, you can decide to make that investment.

Regarding the transformations and resizing of the budgeted sector, the proposal focuses primarily on resizing the Central State Administration.

A proposed law is already circulating that implies a significant reduction in ministries, which also includes the reduction and downsizing of all budgeted structures of the State and the Government.

The above will also impact the resizing of the structures and staffing levels of territorial and local administrations.

Transformations are proposed regarding the strengthening and autonomy of municipalities. This empowerment of municipalities, this need to achieve autonomy at the municipal level, we propose starting with the decentralization, from the different levels—national, provincial—to the municipalities, of the following: strategic planning; territorial and urban planning; food sovereignty and food and nutritional security; community services; and the promotion of local economic development, which includes diversifying and strengthening their productive fabric, considering the participation of different economic actors, Cubans residing in the country or abroad, and including local production systems.

This also includes 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.

It also includes stimulating and managing foreign direct investment, which can be approved by the municipalities themselves without the need for further procedures.

It also includes the administrative management of the municipality's human resources; local financial and tax budget management; environmental management and addressing climate change; social services and assistance; governance, popular oversight, and citizen participation; and the management of knowledge and training projects.

These transformations empower municipalities to approve investments, just like businesses, in accordance with their development strategy, which includes managing projects for Cubans residing in the country and abroad, and defining credit modalities that support their strategic planning.

It also includes creating funds within the municipalities based on contributions from the profits of the business system, whether state-owned, private, or cooperative, and from shareholdings. Because a municipality, in addition to having its own municipal companies, will be able to buy shares in state-owned companies and hold a stake. And all those dividends would form part of this development fund, where each participant can submit projects for the development and promotion of activities within the territory.

The municipal and provincial agricultural delegations are being eliminated, and a new structure is being created at the territorial level.

What would this look like? It must be said that today the functions of these provincial and municipal delegations are completely distorted. Rather than fulfilling the state functions for which they are designed, they even engage in business-like activities.

How would national subordination, that is, to the Ministry of Agriculture, be affected in the provinces and municipalities? Structures and offices will be created to manage state policy on land use and state control of livestock; and municipal subordination will be responsible for managing policy, promoting, and controlling food production.

With the same personnel we have today, we can create this national office to control land and livestock, and also provide municipalities with a structure to control and promote food production for different actors and production methods.

We must diversify the mechanisms and channels for revenue collection in municipalities to strengthen their management and development.

Consolidate the local economic system with the participation of different stakeholders.

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

It is proposed to charge and apply differentiated rates, without subsidies, so that all economic actors, both state and non-state, pay for solid waste collection services. Subsidized rates for households, based on income levels, would be offered to the population, with the guarantee of collection.

Transform the requirements and management of local development projects. Greater incentives should be given to encourage economic and productive projects to transition to alternative state and non-state management models.

Recognize the capacity for association among municipalities to solve common problems. Today we have large municipalities with abundant resources and small municipalities with limited productive activity that can form partnerships. It's even possible for two municipalities to decide on certain services and products located within the same territory, with those products destined for both municipalities. Examples of this exist today, but it would be recognized and generalized wherever it benefits both municipalities.

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

Allow the participation of private and foreign capital in the import and marketing of fuels, including the retail network. We have opened up the process and removed all obstacles so that all forms of management that are able to do so can acquire fuel and market it in the country.

Expand and restructure the management of the service station network, including mobile service stations. To this end, establish service stations managed by different economic actors, incorporating photovoltaic systems with energy storage so that they become independent of the national power grid, and encourage the installation of charging stations to market electric vehicle charging services.

Formulas are already being implemented where some micro, small, and medium-sized enterprises (MSMEs) are operating service stations, while others are requesting permission to operate service stations or bring in mobile service stations. What we are asking is that everyone who is going to do this bring their own photovoltaic system so that it doesn't become an additional burden. And, furthermore, we have asked that service stations that have been closed for years, located in various state-owned enterprises, be reopened and put back into operation.

We are also requesting the design of financing programs, the streamlining of requirements, and the expansion of guarantees for granting loans to legal entities and individuals that incentivize the energy transition, and the stimulation of investment from the demand side.

We are also requesting that state-owned enterprises be allowed to use foreign platforms to process payments for the purchase and sale of fuel.

We are finally requesting the application of a 1% physical or financial tax on fuel imports, earmarked for operational inventories and primarily for social institutions.

We are also requesting the application of a 1% physical or financial tax on fuel imports, destined for operational inventories and intended primarily for social institutions. Reduce the tax by an amount equivalent to the investment made by those economic actors, whether state-owned or non-state-owned, who voluntarily invest in renewable energy sources as part of their social responsibility in public service, social, or care centers, including street lighting. It is already known that several MSMEs and other actors have been installing these systems in clinics, funeral homes, and banks. And to incentivize this, what are we saying? Anyone who makes this type of investment will be able to deduct the amount from their taxes.

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

Modify land management and use for all economic actors; however, it is made clear that the principle of land ownership by all the people will be maintained.

The real right of usufruct over the land is granted to legal entities, state, private, mixed or natural persons who request it, for an indefinite time and the amount of areas or lands, according to the project they present and thus it is approved, for all agricultural, forestry, tobacco productions, as well as for eco and agro-tourism development projects.

The above impacts the proposed Law on Land Use and Possession; that is, the limitations it imposes would need to be broadened somewhat. But one concept must be clear: we cannot continue to impose obstacles and limitations on those who have the will to make the land productive.

The state-owned enterprise that manages the land, socialist property of all the people, should be empowered to grant it in usufruct to applicants through the corresponding contract, complying with legal regulations. Currently, these powers do not belong to the enterprises. Currently, it is the enterprises, and even cooperatives, that have the responsibility of managing this land on behalf of the State and the people; but granting it is a bureaucratic process that goes from there upwards. Therefore, the enterprise could do it directly.

The grant of these lands in usufruct to agricultural production cooperatives that manage them should also be authorized, once, in this case, it is approved in the general assembly of the cooperatives and in compliance with current legal regulations.

Eliminate the requirement for direct and stable employment on the land by usufructuaries. Currently, someone who requests land because they have resources and want to hire people to work it, if they have another business and cannot dedicate themselves to farming, even if they can finance and import the inputs, cannot do so because they are required to be physically present on the land. With this, we are eliminating this prohibition, and 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 "labor collectives," a formula currently used in agriculture, where it works well in some areas but not in others. The idea is to reorganize this as a productive model and thus propose the structural transformations that this requires.

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

Grant cooperatives the authority to conduct foreign trade directly, enabling them to export products and import agricultural inputs and technologies without excessive bureaucratic hurdles.

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

Today, sometimes, financing from an international fund has to come through here, through Havana, and intermediaries are sought out until, by the time it reaches the cooperative, the place where the project is to be developed, some of the money has already been invested, and not necessarily in increased production.

Allow cooperatives to open bank accounts abroad and in Cuban banks; they can open foreign currency accounts abroad and in our banks.

Make agricultural marketing more flexible, recognizing the market's role in price formation.

Decentralize and empower the formation of prices for agricultural products to entities within the state agricultural business system and the non-state sector, to cooperatives, and to all producers.

The contracting and price-setting of agricultural products will be agreed upon between the producer and the buyer.

Standardize the tax regime for all economic actors that produce, process, and market food; incentivize all producers with these tax regimes.

Create a National Price Information System for agricultural product markets, with reference price publications on various digital platforms.

Design incentives for all economic actors to trade agricultural inputs in both foreign currency and local currency, and to have access to the foreign exchange market.

Authorize all economic actors to engage in direct sales.

Promote the creation of input markets in foreign currency, open to domestic and foreign individuals and legal entities, with simplified processes.

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

Establish banking procedures that guarantee the execution of foreign currency transactions for the sale of inputs to producers and payments to suppliers abroad, through the use of POS terminals for payments by debit card, 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 and creating a bank for Agricultural Development.

Decentralize the use of the Agricultural Development Fund to municipalities, tailored to the characteristics of each territory, upon presentation of projects that contribute to the Development Strategies related to food production.

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

Digitizing and making transparent the management of aid through the use of the Soberanía platform for real-time updates of the registry of individuals and families in vulnerable situations. This will systematize the different forms of assistance, 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. In other words, the number of people in this situation has already been visited and identified.

Establishing that all economic actors, both public and private, national and foreign, as part of their social responsibility at the community level, in terms of financial resources, material resources, and services, participate directly in the following activities. (Currently, this is done by companies and MSMEs. We are not asking for it to be mandatory, but we need everyone to join in raising awareness so that all economic actors in the country can participate and support these social institutions.)

Which ones are we referring to? Supporting pension payments through agreements with banks. The problem—which remains unresolved—faced by elderly people who receive their pensions via debit cards but struggle to access them and purchase basic necessities. There are already initiatives in our neighborhood: a MSME, a self-employed worker, or a company is paying them in cash, and the bank deducts the amount paid to the pensioner from the taxes on this payment method.

Also, supporting the soup kitchens within the family assistance system and community food centers. If an MSME wants to manage a Family Assistance System while maintaining service to these elderly people and also sell other items for profit, we agree, provided the social purpose and care for these individuals are maintained.

Supporting homes for children without parental care.

Supporting nursing homes, maternity wards, senior centers, and other social service facilities.

Establishing differentiated pricing, discounts, even free services, or solidarity vouchers for people in vulnerable situations.

To assist individuals in situations of multidimensional vulnerability identified by local governments.

To support social and healthcare transportation.

To support public health institutions and educational centers.

To contribute to community hygiene and sanitation in critical areas.

To provide basic necessities to social institutions.

To create monthly food baskets for individuals and families in vulnerable situations.

To offer employment, training, and apprenticeship opportunities to these individuals.

To create local emergency funds with private contributions.

To enable private premises as collection and distribution points in emergency situations.

To support funeral services for families without resources.

To promote fairs and community markets in vulnerable communities.

To strengthen social work with a proactive and preventative approach by prioritizing its work in municipalities.

Providing small-scale assets for the development of non-state activities to people in situations of multidimensional vulnerability, as a way to enter the workforce and overcome this condition. So, rather than just stimulating, we should assist people in need, connecting them to society. If there's a space available, we could say, "We offer you this space so you can sell something, generate income, and support yourself," or if we can sell them an electric motorcycle or a tricycle so they can pick up passengers. This would allow us to incorporate that person into providing a public service and become self-sufficient.

Designing educational, training, postgraduate, cultural, and other selected services that constitute sources of income for the social sector.

Designing differentiated rates for childcare services. Currently, the fee is symbolic, and we charge the same to someone with a low income as to someone with a higher income. We would implement this for both childcare centers and semi-boarding schools, based on family income.

Design tax benefits for workshops employing people with disabilities to encourage them to increase their personal income.

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

Eliminate product subsidies, transforming them into subsidies for people, and implement this gradually, starting with products that are cross-cutting across the economy and impact production and services. This requires passing on the real costs to wholesale and retail prices.

To guarantee assistance to those who need it, in addition to the social assistance budget, a social protection fund will be created as a prerequisite for these transformations. This fund will be financed by the savings generated by eliminating these product subsidies. Companies will be able to sell their products at higher prices, and the money saved from the budget will be used to create a fund to subsidize those who need it.

Another area where we propose transformations is in the labor and wage sector, and here I want to elaborate:

The most vulnerable sector is the state-funded sector, which is why this measure proposes implementing a comprehensive salary reform in the state-funded sector. However, its scope extends beyond this, and I will explain:

This measure primarily benefits a sector—the state-funded sector, I mean—that encompasses 51% of all workers in the country, including those in the social sectors, achievements of the Revolution.

That is why it has been decided to increase the minimum wage, which is currently 2,100 pesos to 3,210 pesos. While we recognize that this is still insufficient, it represents a 53% increase based on the actual resources available to cover it (Applause). This requires an investment of 42.5 billion pesos, but it is a first step that we have no doubt will have a positive impact.

Its implementation includes updating all salary scale groups; Since the minimum wage has increased from 2,100 to 3,210 pesos—an increase of over 1,000 pesos—it will affect all levels of the business sector, impacting 51% of workers.

This decision will be implemented starting in July, so workers will receive this benefit with their August paychecks.

Why did I say the impact is broader? Because although this measure covers the entire public sector, we want to clarify that it will impact and benefit the private sector. While companies have been granted the authority to define their own pay scales and salary systems, from now on they will be required to pay at least the increased minimum wage. In every company where someone currently earns the minimum wage, those salaries will increase by 53%, and this applies to all types of workers in the economy. No one in Cuba can earn less than the minimum wage. Now we must implement and review this throughout the entire public sector, and even in the private sector, to ensure that no worker is left unprotected or excluded from this decision.

As a matter of policy, we propose defining—which is an important and transformative element, and we intend to do it every year—the minimum wage for the following year, based on the country's financial situation and inflation.

And, correspondingly, also define the amount of Social Security benefits and pensions. As these are increased, this will have a positive impact on pensions, as well as on salary increases based on inflation trends.

Regarding the Social Security pension system, establish the following:

The elimination of the limit on the contribution scale for the non-state sector. Those who wish to contribute to Social Security at levels higher than the current scales may do so, and when they receive those benefits later, they will receive more money.

That people who work in both the state and non-state sectors, including those with multiple jobs simultaneously, be able to register and contribute to the corresponding schemes for each activity and thus later benefit from those benefits.

That of the 30 minimum years of service required for the contributory scheme, up to a maximum of ten years be considered if the individuals have dedicated those years to family care.

This measure stems from the country's complex demographic situation, where policies have been approved to encourage care for those in need. Therefore, those who contribute to this caregiving—those who dedicate themselves to caring for a family member or someone who is ill—will have their time worked and will be considered eligible for social security contributions, which will be deducted from the required 30 years of service.

The administrative approval process for holding multiple jobs will be eliminated for technicians, healthcare professionals, researchers, teachers, professors, and other public officials as determined. Due to the nature of the work performed in some sectors, specific regulations will need to be established; this will require an implementation procedure.

Incentives will be established to retain the skilled workforce, with an emphasis on young people and women, who represent a significant pool of potential employees in the country.

Establish a monthly income support payment equivalent to a minimum wage, to be repaid later when they are employed, for young people between 18 and 30 years old who are neither studying nor employed, who enroll in a training course to prepare them for employment. If the training is for employment in a government agency, the funding will be covered by the budget; if it is for employment in a private company, the company will cover the costs. One of the serious problems we face is the large number of people who are neither studying nor employed. We must continue to work towards getting all adolescents and young adults into education, and for those who are able to work, this measure will provide them with financial support to prepare themselves and enter the workforce.

To empower employers, in agreement with the union, to negotiate reduced working hours and corresponding payments for professional activities—including other non-professional activities—which will be incorporated into the collective bargaining agreement.

Life has shown us, especially in the current circumstances, that in many professions it makes no sense to have people sitting for eight hours, and that the same results can be achieved, and their function and scope fulfilled, through an agreement with management and the union without requiring such continuous presence.

To establish, for the business and public sector, that employees of the same entity can perform other professional, technical, construction maintenance, and other activities. An office worker might be an economist, but they also know about electricity and plumbing; they could perform a job or repair at their workplace and be paid in addition to their regular salary.

To allow teleworking from abroad. We have many cases, requests from people who, for various reasons, travel abroad and can, through teleworking, continue developing projects and fulfilling their employers' missions.

Include professional development abroad for personal reasons, related to the professional profile, as a justified cause for suspending social service, of course, with the employer's consent. That young man graduated, was placed, but reached an agreement with the employer, and has a master's degree abroad that will allow for his professional development; this will be taken into consideration.

Directly empower the entities to determine which workers whose employment relationship ends due to economic, technological, and structural reasons, after evaluation by the governing body, in agreement with the union, and with analysis in the assembly of members and workers.

These workers who, due to a company decision, interrupt their work, those in this situation, will receive monetary protection equivalent to a minimum of three and a maximum of six times their basic salary, depending on their position, until the situation is resolved.

Establish protection equivalent to one month's pay for workers hired by self-employed individuals, who are currently unprotected. If a self-employed worker has someone hired and tells them, "Don't come in tomorrow," they are left without protection. This would obligate employers to cover at least one month's salary.

The banking and financial system requires profound modernization, especially for the effective implementation of these transformations. Therefore, we propose:

Promoting private capital participation in banking. This includes:

Expanding banking and non-banking financial institutions owned by private companies, cooperatives, and foreign investment with corporate and universal banking licenses.

Private banks will operate under the supervision of the Central Bank of Cuba, under the same regulatory conditions as state-owned banks.

The establishment of non-banking financial institutions to support the banking sector, with both domestic and foreign private capital, will be permitted for the provision of microloans.

Eliminating restrictions on foreign currency payments between businesses with foreign capital and their domestic suppliers. Currently, all foreign investment can access a domestic supplier that pays in foreign currency.

Allowing legal entities and individuals to open foreign currency accounts without prior administrative authorization. Currently, this is a cumbersome process involving various ministries; this would be eliminated.

Implement a regulatory framework for virtual assets and the use of financial technology, and expand its use for international and domestic payment and collection transactions. Create financial entities exclusively dedicated to and specializing in virtual assets.

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

Restoring the role of bank credit as an essential function in the economy, diversifying collateral and defining its implementation, establishing credit limit standards per client, simplifying approval processes, and creating new products, among other actions.

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

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

Designing new, high-quality products and services for each sector, supporting financial innovation.

Implementing the last-mile payment agent model to formalize remittance flows through a private channel.

Designing alternative avenues for bank capitalization in addition to resources from the State Budget.

Updating the strategy with a new approach to managing external debt, taking into account current complex conditions.

Accelerating the automation of banking processes and reducing the paperwork associated with the services provided, a demand from the public.

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

Complete the process of eliminating limits on bank transfers and withdrawals by individuals and legal entities, both domestic and foreign. Another demand is the 5,000 pesos limit. Open all of that up.

Other transformations in this banking and financial sector are directed toward the foreign exchange market. In this regard, the following is proposed:

Resize the official foreign exchange market, based on all these decisions, as well as the remittance market, with the participation of non-state economic actors, which includes granting licenses for the operation of private exchange houses.

Create a digital exchange market in real time with authorized agents.

Implement a currency auction system, something that is done in all countries and that we, all actors, can do too.

Carry out successive devaluations of the national currency to reduce exchange rate differences. Companies that do not support the devaluation will be liquidated. This measure is aimed at leaving behind the 1 by 24, which no longer makes sense. We cannot make big jumps in rates. Because? Because this has an impact on inflation, but successive devaluations will be made, that is, the rate of 1 in 24 will be changed, which will become closer to reality.

This includes incorporating segment III, which is what the Bank offers, with that rate of about 500 pesos or a little more: the diplomatic sector, state MSMEs, foreign investment that operate with non-state forms of management, guaranteeing that no arbitration occurs. What does that mean? If you are going to go to the market and you can sell dollars there for 500 pesos, it cannot be that the electricity service that they are providing to that mixed company is at 1 for 24, subsidized. Therefore, whoever agrees must also pay for their service and carry out those expenses without subsidy.

In the case of companies, which we want to put on equal terms, they will compete freely for the sale, and in a controlled manner for the purchase in the different currency markets.

Create state and private non-banking financial institutions that are dedicated to channeling financial flows, including remittances, through exchange operations.

Establish single exchange windows for all economic actors, as decided.

Expand the corporate purpose of a non-banking financial institution that offers the trust service for the administration of international cooperation funds.

The decentralization of powers and the promotion and consolidation of actors in the economy require undertaking transformations in the tax system:

To this end, it is intended to improve consumption taxation through the gradual implementation of the value added tax, known as VAT. It will begin with certain production-consumption chains and will contemplate reduced tax rates on products in the basket of goods and services.

The above will gradually solve the distortion of applying taxes to the same product throughout the production and commercial chain.

Establish electronic invoicing with incentives to promote its adoption by taxpayers.

Apply a bonus to the sales and services tax based on the level of banked sales. There is a comprehensive program to update banking practices, a necessary process, but one that hasn't worked well, and therefore, changes are being incorporated to incentivize the use of banked sales.

Reduce the tax burden on the business sector in terms of income tax, with the goal of increasing its growth and investment capacity. Broaden the tax base by eliminating special deductions that are not economically justified and reducing the risk of tax evasion.

Establish a tax on gross income for companies that declare losses for more than two years. This practice has been growing; many MSMEs that declare losses are not paying taxes, and this needs to be stopped. A special tax should be levied, or the companies should be liquidated.

Apply a reduced corporate income tax rate to the agricultural sector, thus continuing to facilitate and stimulate production.

Simplify the calculation and payment of corporate income tax by eliminating the per capita profit component, which implies applying the tax to members of all types of cooperatives.

Design an accelerated depreciation regime 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 state investment, which is currently conditional on its use for development and capitalization. This is the 60% of the business system that has been analyzed and criticized as being high. The measure aims to reduce this financial burden, but the retained funds will be conditional on their use for the development and capitalization of the companies themselves.

Apply tax incentives to state and non-state economic actors that finance investments in the social sector. Currently, we're referring to those who install solar panels, etc.; but this would apply to any form of management that decides to contribute to the repair of a school or a hospital. We would give them the possibility of deducting these expenses from their taxes.

Update the personal income tax in accordance with the current inflationary scenario through the following adjustments:

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

Increase the minimum tax-exempt amount to the level of the country's average salary at the end of 2025. Otherwise, salaries are not high today, yet the tax burden is. These measures will reduce the personal income tax burden.

Reinstate the simplified tax regime for less complex activities, with 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 larger taxpayers with higher incomes and contributions.

Increase the fixed amounts of the following taxes:

The land transportation tax, based on vehicle type, value, fuel, and other factors; the vessel tax; the tax on documents; environmental taxes; and the fee for registering commercial advertisements.

Design tariffs and incentives that promote domestic production processes and the import of raw materials, materials, technologies, and equipment for renewable energy sources. Anyone importing raw materials and technologies to increase domestic production and contribute to the country's development should receive greater incentives.

One of the issues with the greatest impact on the population continues to be prices. Therefore, as you have seen, these proposed reforms, especially those related to economic actors and productive activity, include specific changes associated with prices.

Additionally, the power to approve prices and tariffs is being considered for decentralization to businesses and territorial and local administrations. The central government will no longer approve price ceilings.

Price formation based on the expenditure method will be eliminated, and prices will be established using the market reference price or a correlation method, thus defining their position in the value chain.

Let's move on to the reforms in foreign investment, a sector in which incentive measures have been implemented to encourage greater integration into the economy. The following reforms are proposed as new incentives:

Encourage foreign investment in private companies, which is currently prohibited. This means that a foreign company can form a joint venture with a MSME or a private company, as well as enter into international economic association agreements or other permitted arrangements.

Extend the limit for granting surface rights to 99 years. This limit has been in place until now, and investors say: "I'm coming to invest in Cuba, but it's complicated. How will I recoup my investment?" Well, we are now extending this limit to 99 years, as well as the right of usufruct for more than 50 years for this foreign investment.

Allow businesses with foreign capital, in any form, to open bank accounts abroad, which is currently an exclusionary procedure, without requiring authorization. In all cases, it is logical that the Central Bank of Cuba and the National Tax Administration Office must be notified so that the corresponding taxes can be paid.

Allow real estate businesses to carry out transactions involving the purchase and sale of residential units. Today, there are real estate activities in the country that are only permitted to lease or rent, not to sell, thus providing this flexibility.

Eliminating the mandatory use of employment agencies to select and hire personnel would remove the limit; a foreign company could freely hire its workers without a third party.

Allowing foreign investment to access its income in foreign currency, operate flexibly in an environment of partial dollarization of the economy, and grant it access to the foreign exchange market.

Reducing documentation and processing times, as well as decentralizing the approval of foreign investment, which includes applying the principle of tacit approval. This means streamlining all the paperwork and consultations, and if no response is received, the applicant is considered to have agreed.

This last point, tacit approval, will be applied to all permitting processes in the country related to issuing licenses for economic, financial, and commercial activities, with a direct impact on the registry process.

Allow foreign investment in Old Havana and other heritage areas that is not currently permitted.

In the area of ​​foreign trade, a transformation of its management has been envisioned, and the following is proposed:

Promoting exports of goods and services, which, through the decentralization of export powers, differentiated incentives, and productive integration with foreign capital, will increase the total value to achieve a sustained trade surplus in goods and services. The current intermediation by state-owned importing companies has proven to be a bureaucratic and inefficient mechanism in most cases. Therefore, today all these management forms will be authorized to import directly.

Applying the principle of negative nomenclature to companies engaged in foreign trade, including foreign investment. Instead of specifying what they are requesting—"you can do this," "you can do that"—the solution will be a list of what they cannot import; everything else is permitted.

Allowing private companies and cooperatives to directly conduct foreign trade activities, subject to prior authorization from the Ministry. This is what I just explained: that all private companies and cooperatives will be able to export and import directly.

Approve allowing scientific institutions to sell trademarks and patents on the international market.

Another issue that logically raises concerns is the partial dollarization of the economy, which remains necessary under these circumstances. Therefore, the following is required:

Expand the scope of this partial dollarization to include intercompany and commercial transactions, in accordance with the current situation.

Modify the current concept of closed foreign currency schemes, that is, self-financing schemes, toward a formula that would be a contribution scheme based on each company's foreign currency transactions.

Furthermore, one of the sectors most impacted by the intensified blockade is tourism, which has had to halt operations in most tourist destinations. Recently, secondary sanctions have been applied, leading to the withdrawal of international hotel chains from the country. Therefore, we propose:

To the existing business models in tourism, which are joint ventures and management contracts, we propose the following for all tourism activities: leases, the granting of usufruct rights for a fee, the concession of areas with assets or under development in different regions of the country, and the sale of real estate. For the latter, the sale of real estate, approval will be required on a case-by-case basis, and all such approvals will apply to foreign investors, Cubans residing abroad, and Cubans residing in the country.

Include in the Business Opportunities Portfolio certain areas of the country designated as Economic Development Zones, where special incentive programs will be established.

Allow the application of all business models in the keys, which is currently restricted; in other heritage areas, such as Old Havana and Trinidad, as previously mentioned; and in all tourist destinations in the country where these models are beneficial to the sector and require foreign investment for their development.

Allow real estate development in all tourist areas of the country where this type of business is needed.

Establish the possibility of developing real estate businesses in areas of Havana, which is currently prohibited, and in other urban areas of the country linked to tourism, with no limitations other than those already established.

Allow joint ventures and leasing for the management of tourist marinas, which has also been subject to restrictions.

Approve tax and fiscal benefits for all economic actors involved in ecotourism projects and other specialized tourism models, with the aim of attracting foreign investment and diversifying sustainable and responsible tourism development.

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

Authorize car rental activity, currently exclusive to two tourism companies in the country, to other state-owned enterprises, foreign investment, and non-state management entities capable of investing in, importing, and renting vehicles.

Authorize the establishment of travel agencies for joint ventures, wholly foreign-owned companies, and non-state management entities.

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

Approve local destination managers capable of integrating all stakeholders and ensuring the efficient operation of the mixed governance model. There are several regions in the country: Viñales, Trinidad, and others, where there is already a lot of state-run tourism activity, and in some places it surpasses private activity, and managers are needed to integrate all of that tourism product.

It is proposed to evaluate the implementation of a special tax, which does not currently exist in the country, or a contribution from all those who travel to one of these tourist areas, to allocate the funds to sustainability, promotion, and the image of the tourist destinations.

Today, many people have invested in these areas, owning rental properties, restaurants, and so on; however, the State, specifically the Ministry of Tourism, must cover the destination's promotion and expenses: waste collection, and the maintenance of all infrastructure. This system exists in every country; it exists in Mexico, where tourism institutions are required to contribute to the promotion and sustainability of that tourist area, that tourist destination.

Promoting Cuban brand franchises abroad as a way to generate income is also proposed. This means taking Casas Cuba, a product showcasing all of Cuba's cultural potential, crafts, products, and so forth, outside of Cuba. The Casas del Habano, the Bodeguita del Medio, and other establishments like the Floridita and Tropicana, which already exist in other countries with tourist franchises that charge admission, are examples of this.

Another sector where we propose transformations is transportation:

To this end, we propose eliminating the restrictions on vehicle acquisition by various economic actors, as well as the established deadlines, and incentivizing photovoltaic electric mobility, including for individuals.

What does this mean? There is a limit of up to six vehicles. MSMEs have grown and need to transport goods, raw materials, and passengers, and we tell them: they cannot buy or import more vehicles. Therefore, we are promoting this, but within that framework, we are incentivizing the import of electric vehicles by removing tariffs and taxes.

Additionally, individuals who can currently ship motorcycles or even tricycles directly from abroad without an importer should also be able to purchase electric cars and ship them directly to the country. And, of course, if the car comes with a complete renewable energy system, it will be exempt from taxes and duties.

Allowing the direct commercial importation of electric vehicles—mopeds, motorcycles, and tricycles—for assembly and sale to legal entities, whether state-owned or private companies, is currently prohibited. This would be done provided the vehicles are accompanied by a charging station powered by a renewable energy source, and in such cases, taxes would be waived.

However, several economic actors, including MSMEs, have already stated: "I can bring in containers of disassembled motorcycles and tricycles to assemble them in Cuba, potentially through a state-owned enterprise. But we would also allow them to sell these vehicles to any individual, legal entity, etc."

Let's now turn to the transformations in commerce, gastronomy, and services, sectors that have been undergoing profound changes with the increasing participation of other forms of non-state management.

In light of the above, the following is recommended:

Modify the policy on state administrative management of commerce, gastronomy, and services, prioritizing non-state management models and foreign investment options for the promotion, development, and management of these activities.

Reorganize wholesale trade, prioritizing the creation of wholesale markets with direct access for individuals and legal entities. Do not place limits on the actors engaged in this activity.

Authorize the marketing and provision of services by foreign entities based in the country. Currently, there are joint ventures that wish to engage in wholesale and retail sales of products, but these face limitations. Therefore, branches and representative offices that request authorization should be included.

Create chains of stores, restaurants, and fast-food chains of recognized brands or other brands established here, with the aim of expanding throughout the country. Any MSME or foreign investment that wants to create a network of restaurants, cafes, hamburger joints, or any other service, will be allowed to do so in order to expand services to the population.

Similarly, we should invite foreign fast-food franchises, of which there are many worldwide, to invest in Cuba and expand their chains within the country.

We should put recreational parks, zoos, aquariums, protected areas, and lodging facilities out to tender to state-owned, foreign, private, and cooperative enterprises, establishing the conditions for their operation, including service to the public. This service must be guaranteed in Cuban pesos, even if a portion is authorized to be sold in foreign currency. However, we need to increase the number of stakeholders involved in the management of these recreational and service institutions, which are currently not in optimal condition.

We should formalize the various existing forms of street vendors in communities, thereby enabling the issuance of street vendor permits and implementing a simplified tax system. This is an existing sector that should be recognized.

We should stimulate wholesale and retail public procurement, utilizing the public procurement budget and bank loans as working capital.

Create an automated, digital, auditable, and public system for bidding on premises and assets for all economic actors. This is key. With this opening to new forms of management, it is necessary that the bidding and awarding process be transparent and fair, ensuring that the government truly benefits in order to invest in all its social programs, and that this process be auditable and transparent.

Transition from the regulated basic food basket to controlled sales without subsidies in the retail network. We are not abandoning or renouncing the regulated basic food basket, but current conditions have imposed limitations, including the well-known impact on guaranteeing monthly deliveries of products. In any case, we cannot sell subsidized products, not only those that can be acquired but also those produced in the country. However, we will at least guarantee that they are sold under controlled conditions so that all families have access to them.

Authorize individuals to make commercial imports, levying tariffs in foreign currency. This does not imply granting commercial powers. It's a fairly widespread issue; many people come in, carrying suitcases full of certain products, and currently there's no oversight. They don't pay any taxes on it, and recognizing this would expand access to services for the population, providing many of these products that are in high demand.

Insurance policy also requires transformations in the current context. Therefore, we propose:

Recognizing the profitability of the financial resources mobilized in the insurance industry. Insurance generates income, it has tied-up revenue, and financial engineering can be used to leverage it.

Creating life insurance as a supplement to Social Security protections. This implies broadening the concept of this insurance, so that you can be covered not only in case of an accident, but also in retirement, so that in addition to your pension, you can receive life insurance to have peace of mind.

Boost the marketing of insurance policies in foreign currency, covering risks related to transportation, travel, and other areas. These are individuals who can purchase transportation in foreign currency, travel abroad, and have their insurance paid for in foreign currency to cover these policies.

Make civil liability insurance mandatory. Everyone who drives a vehicle must be insured to guarantee civil liability.

A crucial area, and one of the pillars of government management, is digital transformation. This includes aspects related to artificial intelligence and the knowledge economy, among which the following are proposed:

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

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

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

Implement a competitive remuneration system that contributes to boosting the export of professional services in digital technologies and artificial intelligence. We have highly skilled professionals, even in state-owned enterprises, but their salaries are not in line with the average in other non-state sectors, and this needs to be addressed.

Allow foreign investment to expand the capacity of Etecsa's data centers.

Allow the private sector to provide data center services that do not host platforms for managing the country's critical infrastructure.

Allow the manufacture 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 bidding processes, guaranteeing transparency and security, and including risk classification.

Allow mixed management of postal infrastructure and last-mile logistics.

And recognize data as the fifth factor of production, alongside land, labor, capital, and entrepreneurship. This implies considering data as a non-renewable economic resource with the capacity to generate wealth.

The national statistical system requires modernization in accordance with these transformations:

We have conceived the design of a statistical system that adapts to the economic and social transformations.

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

Resume the construction of the producer price index and the foreign trade index, and maintain the consumer price index linked to products derived from observed prices.

Comrades:

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

Create a working group, led by the Central Committee of the Party and composed of representatives from the various institutions involved in these control matters, to analyze all established control mechanisms and propose transformations for their design, as well as to strengthen the structures that participate in them.

Another highly complex issue that has been considered is the creation of a working group to assess the impact of these transformations on the legal system. To this end, an evaluation was conducted of all legal norms published in the Official Gazette of the Republic since 2019, and other norms related to the topics proposed here were selected.

As a complement, artificial intelligence tools were applied, the results of which were reviewed by the leadership of the National Assembly, the Supreme Court, and the Ministry of Justice. It was determined, in principle, that the proposals made here are referenced in nine articles of the Constitution of the Republic, and it was concluded, in principle, that they do not require amendments to the Constitution.

A preliminary assessment identified that implementing these transformations involves and impacts more than 148 provisions of the Cuban legal system: fifteen norms that would need to be repealed, twenty-two norms that would need to be completely modified, seventy-nine norms that would need to be partially modified, and more than fifty supplementary norms, resolutions, etc.

Additionally, it will be necessary to draft thirty-two new higher-ranking norms: ten laws, fourteen decree-laws, and eight decrees.

This matter has been analyzed to ensure the mechanisms that will allow this process to be guided by the National Assembly, within the established framework and powers of this body, in order to move forward with the implementation of these transformations given the urgency of the moment.

Deputies:

I cannot conclude without first reiterating that the defense of the socialist homeland is the first priority. We must undertake these transformations without neglecting this premise, mindful of the lesson that those who neglect this principle do not survive the fall.

Indeed, the proposed economic and social transformations envision profound changes in accordance with the Government's 2026 Economic and Social Program, responding to the current objective economic conditions and sociodemographic dynamics.

These proposals and the Government Program are complementary, a fact reinforced by the observation that 76% of these transformations fully align with the Program's content, while the remainder expand its scope.

They simultaneously integrate transformations of the business sector, greater openness to domestic and foreign private capital, banking modernization, coherence among exchange rate, banking, price, and tax reforms, technical pragmatism in addressing partial dollarization, territorial decentralization, and a downsizing of the central government administration.

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

The following challenges have been identified for political leadership, in harmony with the technical discipline required by the transformations: developing an operational implementation sequence and a sound timeline; institutional capacity and understanding in key areas; social protection; political and legal legitimacy; citizen participation; and mitigating the risks and impacts of the geopolitical environment.

The implementation process will present some contradictions that we have taken into account: partial dollarization and its impact on devaluation; the elimination of subsidies and its relationship to prices, which requires effective social protection; the decentralization of powers without the capacity of municipalities to assume it; and the liberalization of agricultural prices without sufficient or increased production.

As needed, previous models will be analyzed to define risks and mitigate negative impacts; in other words, this proposal is not rigid. Control will be maintained throughout the implementation process of the transformations, and corrective actions will be adopted, along with a learning system for key personnel and executives.

Proposals to address the crisis stand out, opening a transformative window that, if not implemented now, could generate irreversible consequences in the political and social order.

I want to reiterate that these transformations do not constitute a deviation from the socialist project; on the contrary, they respond to the inherent logic of its development. Cuba is in the historical period of building socialism, guided by the ideas of Fidel and Raúl.

As the Army General stated, these proposals are based on the principle that the updating of the Economic and Social Model has the essential purpose of improving the quality of life of our compatriots, where every Cuban contributes their best to building the prosperous and sustainable socialism that our people deserve.

Long live Free Cuba! (Exclamations of: "Long live!")

Long live Fidel and Raúl! (Exclamations of: "Long live!")

Homeland or Death!

We will overcome! (Exclamations of: "We will overcome!")

Thank you very much (Applause).

Source: Sovereignty, information and services platform of the Cuban Government