Days before the September 8 vote of confidence in his cabinet, French Prime Minister Francois Bayrou accused Italy of engaging in “fiscal dumping,” in response to charges made against President Macron by Italian Deputy Prime Minister Matteo Salvini. Fiscal dumping is the practice of decreasing taxes or establishing more favorable circumstances in some nations relative to others in order to draw in foreign investment or enterprise.
In an interview with Franceinfo, LCI, BFMTV, and CNews on Sunday, the French Prime Minister blamed “fiscal nomadism” for the rise in the country’s public debt and criticised “money destined for foreign economic actors. The Italian government emphasized that the country’s economy is “competitive and stable, with no unjustified tax favor policies to attract foreign companies” in a message released on Sunday night.
The paper notes that so-called “European tax havens” also have an impact on Italy, diverting significant funds from the public coffers. The Italian government referred to Bayrou’s remarks as “unfounded” and urged France to work with other European nations to combat tax-dumping member states.
The remarks made by her French colleague are particularly shocking to 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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