Report: European aid 'oxygenates' Havana regime amid repression
Translated from Greek, summarized and contextualized by DistantNews.
At a glance
- A report by the Juan de Mariana Institute criticizes European financial support for Cuba, arguing it props up the Castro regime despite human rights abuses.
- The report highlights Cuba's economic decline since the 1959 revolution, with widespread poverty and inability to meet basic needs.
- Despite political repression, European Union and Spanish funding, including debt forgiveness, continues to flow to the island, with EU aid doubling for 2021-2027.
European capitals continue to channel significant funds to Cuba, despite the government of Miguel Dรญaz-Canel holding over a thousand political prisoners, according to the Cuban Observatory for Human Rights. A report by the Juan de Mariana Institute, titled "The Price of Supporting Castroism," reveals a provocative reality about the economic and political relations between Europe and Cuba.
Historically, pre-1959 Cuba had a per capita income comparable to Italy, high literacy rates, and a life expectancy exceeding its Caribbean neighbors. Today, the communist regime has deprived the country of over half its potential income, with average monthly wages on the informal market ranging between two and fourteen dollars. Social and economic collapse is evident: 89% of Cubans live in extreme poverty, 86% of households cannot cover basic needs, seven in ten citizens skip at least one meal daily, and historical sugar production has nearly vanished.
The survival of this authoritarian system, responsible for thousands of deaths and imprisonments of political dissidents, would not be possible without continuous external financing. After the collapse of the Soviet Union and the weakening of Venezuela, which once provided billions of dollars and thousands of barrels of oil daily, Russia stepped in by forgiving debts and sending oil tankers.
Crucially, the European Union has funded hundreds of projects in Cuba since 1988. Paradoxically, the report notes, as political repression intensifies on the island, European funds increase. Aid for 2021-2027 has more than doubled to 125 million euros compared to the previous six-year period. Although this money is channeled through international organizations and NGOs for humanitarian purposes, transparency regarding its final use remains a concern.
Spain has gone further in supporting the Havana regime, offering substantial financial relief. Through successive debt restructurings and conversions, Madrid has forgiven over 90% of Cuba's original debt, leaving minimal outstanding amounts. According to the report, if Cuba financed its debt at market terms with an interest rate of approximately 8%, the cost to public finances would reach 5 billion euros. This indirect but massive subsidy is complemented by sales of police equipment, energy and digital cooperation programs, and decentralized aid provided by various entities.
Originally published by Ta Nea in Greek. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.