“Italy is pursuing a policy of ‘fiscal dumping’.” This was stated by French Prime Minister François Bayrou during a television interview, where he spoke about the risk that the richest French citizens could leave the country if the French government takes fiscal measures that affect this group. He emphasized that “there is already a kind of fiscal nomadism and everyone moves to where it is most convenient for them.” “Look at Italy, which is implementing a policy of ‘fiscal dumping’,” Bayrou said, referring to the benefits foreseen for those who move to Italy or return there after several years of residence abroad.
Prime Minister Giorgia Meloni’s staff has reacted to this statement, saying in a statement: “We are surprised by the completely unfounded statements of French Prime Minister François Bayrou, according to which Italy is engaging in ‘fiscal dumping’, harming France. The Italian economy is attractive and is doing better than others thanks to the stability and reliability of our country.”
“Dumping” is an economic term used when a country or a company offers products or economic conditions that are more favorable than normal, in order to attract investments, companies or people from other countries. In the fiscal context, it refers to deliberate tax cuts or the provision of large fiscal incentives, in order to make a country more attractive to foreigners or the wealthy who want to move there. According to “Corriere Della Sera”, the Italian government’s statement also emphasizes that “Italy does not implement unjustified fiscally favorable policies to attract European companies and, moreover, this government has doubled the fiscal burden that has escalated since 2016 for individuals who transfer residence to Italy”.
The Italian party “Lega” has also reacted to these developments. In a statement, the party of Deputy Prime Minister Matteo Salvini said: “The attack on Italy is serious and unacceptable, a blow to our entrepreneurs and workers, by a French government that is in complete crisis. Let them keep the nervousness and controversy to themselves, we prefer to work.”