Allianz CEO: Europe Stimulus Programs May Widen Deficit

Programs to spur the economy in euro zone debtor countries are risky if they are financed through more deficit spending, the chief executive of Europe’s biggest insurer, Allianz (ALVG.DE), said on Wednesday.

“If there are now loud calls for fiscal stimulus programs, we have to be cautious, in my view,” Michael Diekmann said in the text of a speech at the insurer’s annual shareholder meeting.

“Additional debt burdens could overload the system,” Diekmann said, adding that Europe’s sovereign debt crisis was far from over and that debtor states needed determined reform policies to regain investor confidence, according to Reuters.