“We are not abandoning socialism.” Cuban Parliament Approves Largest Privatization of Economy in 65 Years Cuba’s National Assembly has unanimously approved a package of reforms, including significant privatization and the establishment of private banks, representing the largest economic shift since 1959. These measures aim to improve the quality of life for Cubans by introducing market mechanisms for efficient resource allocation, though leaders emphasize that the country is not abandoning socialism. The reforms, influenced by US pressure and economic struggles, also include new tax systems to finance public services and allow Cuban businesses to hire more employees and entrepreneurs to own multiple companies.

• Cuba’s National Assembly unanimously passed a package of economic reforms.
• The reforms include privatization of state enterprises, private real estate development, and private banks.
• This is the largest change to the Cuban economic model since the 1959 revolution.
• Leaders stated that the reforms do not mean abandoning socialism, but rather improving the quality of life.
• US pressure and the struggling economy have pushed these reforms to the forefront.
• The reforms allow Cuban businesses to hire more than 100 employees and entrepreneurs to own multiple companies.
• A new tax system will require businesses to partially finance public services.