French PM Bayrou Accuses Italy of Fiscal Dumping Amid EU Tensions

French Prime Minister François Bayrou accused Italy of engaging in 'fiscal dumping,' claiming that Italy's tax policies are attracting wealthy taxpayers away from France, contributing to fiscal challenges. Bayrou emphasized the rise of 'fiscal nomadism,' where wealthy individuals relocate to countries with more favorable tax regimes, citing Italy's policies as a prime example. In response, Italian Prime Minister Giorgia Meloni and her government strongly denied the accusations, labeling them as unfounded and highlighting Italy's political stability and recent tightening of tax rules for new wealthy residents. The Italian government called for European-level cooperation to address tax competition and rejected the notion that Italy acts as a tax haven. The dispute underscores ongoing tensions within the EU over tax competition amid economic uncertainty, with Bayrou's comments coming just days before a crucial confidence vote in the French National Assembly. The exchange has drawn attention from EU diplomats concerned about potential divisions among member states.