Days before the vote of confidence in his cabinet on September 8, French Prime Minister Francois Bayrou accused Italy of engaging in “fiscal dumping.” This came after Italian Deputy Prime Minister Matteo Salvini accused President Macron of “fiscal dumping. The practice of cutting taxes or establishing more favorable conditions in some nations to draw in foreign investment or company than in others is known as fiscal dumping.
In a Sunday media conference with Franceinfo, LCI, BFMTV, and CNews, the French prime minister blamed “fiscal nomadism” for the rise in the country’s public debt and attacked “money destined for foreign economic actors.Italy’s economy is “competitive and stable, with no unjustified tax favor policies to attract foreign companies,” the government of Italy said in a letter sent on Sunday night.
The statement notes that so-called “European tax havens” also harm Italy, diverting valuable funds from the public coffers. In a statement, the Italian government termed Bayrou’s claims “unfounded” and urged France to work with other European nations to combat tax-dumping member states.
Specifically, what her French colleague stated shocked Italian Prime Minister Giorgia Meloni. “Shockingly, French Prime Minister Francois Bayrou has made utterly baseless accusations that Italy is penalizing France by “tax dumping,” she said in a post on X.
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