Santo Domingo.- President Leonel Fernandez affirmed last night that the adjustment policies applied in Great Britain and the rest of Europe to cut deficits and pay debts has sparked the social turmoil that stoked the “Occupy Wall Street” movement, and could lead to crisis of democratic governance.

He said the economies which apply adjustment policies and aren’t growing create social inconformity, which simultaneously leads to political confrontation.

In that regard, Fernandez said there’s a need to think about new policies that stimulate spending, but oriented towards productive sectors and infrastructure development. “There’s talk of investment in renewable energy, in fast mass transport and a return to an industrialization phenomenon.”

For the chief executive, the European economic model has always been guided by Germany’s concern with hyperinflation. “It seems to me, let’s say from history, that in the European model it’s always the German concern for hyperinflation and which therefore, if it’s the other way around, which is a stimulus to spending, it’s possible to produce this phenomenon.”

Speaking in a conference on the European Banking Crisis held in the Global Foundation Democracy and Development (Funglode), Fernandez said what prevails is a world of financing. "The fact that the German banks are the main creditors of debts, which seem non-payable, makes them those most interested in pressing the adjustments for them to pay, precisely the Central Bank.”