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Cuba\u2019s Prime Minister speaking to the National Assembly. Screenshot<\/p>\nCuba\u2019s Prime Minister speaking to the National Assembly. Screenshot<\/p>\n
By El Toque<\/a><\/p>\n HAVANA TIMES \u2013 During his address to the National Assembly on July 17, 2025, Prime Minister Manuel Marrero Cruz presented an overview of the measures implemented by the government during the first half of the year. Among announcements related to pension increases and the approval of a new currency exchange market, Marrero attempted to ease the recent public backlash against the government \u2014 intensified by the economic crisis, institutional discredit, and the controversial ousting of the Minister of Labor and Social Security.<\/p>\n Below, El Toque summarizes the key announcements and notable moments from the prime minister\u2019s address.<\/p>\n Pensions: Relief That Falls Short<\/p>\n Marrero acknowledged the \u201ccomplex situation of pensioners\u201d and announced an increase beginning in September (to be paid at the end of August) for those receiving pensions due to age, disability, or spousal death. The measure will benefit 1,324,599 people, 79% of all pensioners. Those receiving the minimum pension of 1,528 pesos (\u2248 4 USD at the informal exchange rate), will see their income doubled.<\/p>\n Although the announcement is intended as a relief, its effects are more symbolic than practical. According to economist Miguel Alejandro Hayes, a Cuban retiree needs 52,000 pesos (135 USD at the informal dollar rate) per month to cover the basic food basket. With the new minimum pension (3,056 pesos \u2248 8 USD), a retiree will be able to cover only 5.88% of that cost. In other words, instead of needing 34 pensions to feed themselves, they will now need 17 each month\u2014still an unattainable goal.<\/p>\n Marrero admitted that this is only a partial solution, as \u201cthere are no financial resources\u201d for a comprehensive pension system reform. Paradoxically, during a 2022 appearance on the program Mesa Redonda, then-Minister of Labor and Social Security Marta Elena Feit\u00f3 Cabrera said that increasing each pension by just 1 peso would require raising the budget by 17 billion pesos annually, making it clear that increasing social spending was beyond the government\u2019s means.<\/p>\n Marrero Distances Himself from the Former Minister\u2019s Remarks<\/p>\n One of the tensest moments of the speech came when Marrero addressed the controversy sparked by the statements of the now-former Minister of Labor and Social Security, who on July 14, 2025, denied the existence of beggars in Cuba<\/a> and described the homeless as disguised tax evaders.<\/p>\n \u201cWhat the comrade said does not align with the government\u2019s policy,\u201d stated Marrero, who\u2014like President Miguel D\u00edaz-Canel\u2014opted for damage control and distanced himself from Feit\u00f3\u2019s rhetoric. According to the prime minister, following the media storm, the official admitted she had made a mistake and did not feel capable of continuing in her role. Marrero called her resignation a \u201cbrave act.\u201d<\/p>\n Limited Acknowledgment of Poverty<\/p>\n Although he avoided using the word \u201cpoor,\u201d Marrero admitted that at least 182,000 families\u2014around 310,000 people\u2014receive social assistance due to being in \u201ca situation of vulnerability.\u201d He made it clear, however, that these are not the only people facing economic hardship.<\/p>\n Meanwhile, data from the Cuban Observatory for Human Rights puts the percentage of Cubans living in poverty at 89%. The gap between this estimate and official figures highlights differing criteria and scopes in assessing the country\u2019s socioeconomic conditions.<\/p>\n Where Did the Money for the National Electric System Go?<\/p>\n Another key issue was the National Electric System (SEN). Marrero reported that since November 2024, the government has invested 1.15 billion USD and nearly 15 billion pesos in its recovery. He acknowledged, however, that this might spark public skepticism: \u201cPeople will say: Where is that money, why are the blackouts continuing?\u201d His response boiled down to saying it\u2019s \u201ca complex issue.\u201d<\/p>\n Experts like Ricardo Torres and Jorge Pi\u00f1\u00f3n estimate that fully recapitalizing the SEN would cost between 8 and 10 billion USD and would take a decade\u2014suggesting that the figures presented by Marrero are insufficient to end the island\u2019s power instability.<\/p>\n Etecsa Profits from Rate Hike<\/p>\n In an attempt to justify Etecsa\u2019s rate hike, Marrero claimed the state telecom company raised over 24 million USD in just 46 days. He also noted: \u201cOf every 20 USD that came in before, 18 were illegal.\u201d The measure, which followed student protests in June, reflects the mismatch between the official exchange rate and the informal market rate\u2014385 CUP per USD\u2014which the state has, in certain contexts, used to set prices for goods and services, even while refusing to recognize it officially.<\/p>\n This double standard also appeared in Marrero\u2019s announcement of an upcoming \u201ctransformation of the monetary and exchange system,\u201d although he gave no further details.<\/p>\n First published in Spanish by El Toque<\/a> and translated and posted in English by Havana Times.<\/p>\n