In a surprising move, Cuban President Miguel Díaz-Canel has ousted Economy Minister Alejandro Gil from his position. The decision comes amidst escalating controversy over the delayed implementation of announced measures to increase fuel and transportation fares in the communist-run country. Under Diaz-Canel's direction, the Council of State has appointed Joaquín Alonso, the president of the Central Bank, as Gil's replacement.
The upheaval follows the government's announcement just two days ago, in which it postponed a highly unpopular five-fold hike in gasoline prices set to take effect on February 1st. The government claimed that a cyberattack originating from outside Cuba had hindered its implementation. This delay in the fuel price increase was accompanied by a similar announcement to defer the planned rise in public transportation rates. These sudden decisions have thrown Cuba's broader economic plan to tackle its mounting fiscal deficit into disarray.
Former economy minister, Alejandro Gil, had been a proponent of the implementation of price hikes for several government-subsidized services. His management of the country's near-bankrupt economy had long been subject to criticism. The proposed price increases, initially announced in December and early January, sent shockwaves throughout Cuba. The country has heavily relied on a vast program of state-subsidized food, fuel, and medicine, and any change to this system has significant ramifications for the population.
Apart from sacking the economy minister, President Diaz-Canel also dismissed the Science, Technology, and Environment Minister, Elba Rosa Perez. Dr. Eduardo Martinez, a lawmaker and the president of BioCubaFarma, a Cuban pharmaceutical company, has been appointed as Perez's successor. Additionally, the Food Industry Ministry will now be led by lawmaker Alberto Lopez, the governor of Santa Clara province. These unexpected personnel changes indicate a significant shift in the government's approach to addressing the country's economic challenges.
Cuba is currently grappling with a deteriorating economy, worsened by the impact of the COVID-19 pandemic and longstanding U.S. sanctions. The government has been seeking ways to reduce its fiscal deficit and promote economic growth. However, the proposed price increases faced strong opposition from citizens, as they feared the measures would exacerbate the already precarious living conditions.
As Cuba navigates these economic challenges, the sudden dismissal of top officials raises questions about the government's ability to effectively address its financial woes. The new appointments signal a potential change in strategy, as President Diaz-Canel seeks to bring fresh perspectives and ideas to boost the country's struggling economy. However, it remains to be seen how these changes will be received by the people and whether they will alleviate or exacerbate the growing discontent over economic policies in Cuba.