UPDATE 1-Italy must rebuild trust in economic programmes - minister

Italy must rebuild trust in its economic programmes rather than focus on European Union rules on budget deficits, Italian Economy Minister Giovanni Tria said on Tuesday.

He was speaking to Rai 3 television after Deputy Prime Minister Matteo Salvini unnerved investors last week by saying the government could raise the deficit beyond the EU's limit of 3% of the gross domestic product if deemed necessary to create jobs. "The problem isn't the 3% (rule) but to rebuild trust in Italy's economic programmes," he said.

Italy has the euro zone's second-biggest debt burden after Greece and its government bonds suffered a heavy sell-off after Salvini's comments. Salvini's right-wing League party is campaigning on a eurosceptic agenda for this weekend's European Parliament elections.