ROME - Italian Economy Minister Giovanni Tria said on Thursday the European Union’s public finance rules known as the “fiscal compact” should be scrapped because they are bad for the economy.

“I think the fiscal compact should be replaced because it is a structurally deflationary mechanism,” Tria said at a conference in Rome.

In other remarks, the minister said it was “crucial” that the United States and China reach a deal on trade tariffs to avoid a “strong” negative impact on the global economy.