Speaking at a Catholic convention in Rimini, Italy, on Tuesday, former European Central Bank (ECB) President Mario Draghi warned governments against the risk of another debt crisis unless they utilize the massive coronavirus-relief stimulus to upgrade their economies.

Key quotes (via Bloomberg)

“European institutions, savers and financial markets will only fund “good debt” if it’s being used for investment in human capital, crucial infrastructure, or research.”

“If, however, debt is used for unproductive purposes, it will be seen as ‘bad’ debt and its sustainability will be eroded.”

“Low-interest rates are not in themselves a guarantee of sustainability.”

”For years, a form of collective selfishness has led governments to divert attention and resources toward initiatives that generated guaranteed and immediate political returns.”

“This is no longer acceptable.”