Cuba’s Communist Party has approved sweeping free-market reforms, marking one of the most significant economic shifts in decades.

The emergency package, expected to pass the National Assembly, would expand private enterprise, attract foreign investment, and allow private banks and real estate development.

President Miguel Díaz-Canel acknowledged that Cuba’s economic crisis is driven by both external pressures, including U.S. sanctions, and internal issues like bureaucracy and inefficiency.

The reforms signal a major departure from Cuba’s long-standing state-controlled model, though officials warned some party members may resist the changes, Al-Jazeera has reported.

The announcement comes amid continued U.S. pressure and international calls, including from the European Union, for broader political and economic reforms on the island.