The Italian government has expressed astonishment after French Prime Minister Bayrou accused Rome of "fiscal dumping".
"French Prime Minister François Bayrou's completely unfounded claims that Italy is engaging in 'fiscal dumping' and penalizing France are astonishing," Premier Giorgia Meloni's office said in a statement on Sunday.
"The Italian economy is attractive and performing better than other countries' thanks to our nation's stability and credibility.
"Italy does not apply unjustified tax advantages to attract European companies and, under this government, it has even doubled the flat-rate tax burden in effect since 2016 for individuals transferring their residence to Italy.
"Furthermore, Italy has been penalized for many years by the so-called "European tax havens," which drain our public coffers of significant resources.
