Increased government spending through stimulus plans risks plunging the world into a new crisis and has already sparked a return of inflation, according to the chairman of Nestlé.

Peter Brabeck, one of Europe’s leading businessmen with his role as vice-chairman of Credit Suisse and L’Oréal, told the Financial Times in a video interview that the current recession would be “very deep” and “relatively long”. He added that the deficits being created by many governments meant “this crisis will go on for a long period”.