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Draghi Tells Governments Only ‘Good’ Debt Can Save Economies

  • Low interest rates alone no guarantee for debt sustainability
  • Former ECB chief delivers first big speech since stepping down
Mario Draghi
Mario Draghi

Photographer: Alessandro di Meo/POOL/AFP via Getty Images

Former European Central Bank President Mario Draghi warned governments to use the massive stimulus they’ve deployed in the coronavirus pandemic to upgrade their economies or face the risk of another debt crisis.

In his first high-profile appearance since leaving his post in October, Draghi called for “credible” economic policies to avoid disillusionment among the young, who will have to repay the cost of fighting the coronavirus. He also praised the European Union’s deal to issue joint debt to fund the recovery.