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France recalls its ambbadador to Italy for talks after a series of "unfounded attacks and extravagant statements" by Italian leaders.
The French Foreign Ministry said that it was an "unprecedented" situation since the end of World War II.
On Wednesday, France warned Italian Deputy Prime Minister Luigi Di Maio not to intervene after his meeting with French demonstrators in "yellow jacket" near Paris.
The two governments also clashed on issues such as immigration.
The latest upsurge came after the meeting between Di Maio, leader of the populist Five Star movement, and two leaders of the anti-government movement on Tuesday.
He posted a picture of himself on Twitter with a leader of the yellow vest and with Ingrid Levavbadeur, who runs a yellow vest list (yellow vests) for the May European Parliament elections.
What did France say?
"For several months, France has been the subject of repeated accusations, unfounded attacks and extravagant statements," said Thursday the Ministry of Foreign Affairs.
"The most recent interference is an additional and unacceptable provocation, they violate the respect due to the democratic choices of a friend and ally, and to disagree is one thing, to exploit a relationship for electoral purposes is another. "
Luigi Di Maio tweeted that "the wind of change has crossed the Alps"
On Wednesday, the ministry described Di Maio's visit as a "new provocation" that was "unacceptable between neighboring countries and partners in the heart of the EU".
Hugh Schofield, of the BBC in Paris, said that this line represented a new low in the rapidly deteriorating relations between Paris and Rome.
What is the background?
Relations between France and Italy have been strained since the Five-Star Movement (M5S) and the right-wing parties of the League came to power in Italy in June 2018.
In January, France convened the ambbadador of Italy after Di Maio said that Paris "has never stopped colonizing dozens of African states."
Italian leaders clashed with France on issues such as migration protests and culture.
Who are the yellow vests?
The "yellow vests" protests against fuel tax increases began last November, claiming that the measure had been detrimental to people living in remote areas of France and dependent on the car.
They derive their name from the high-visibility vests they wear – and that the law forces French motorists to wear in their vehicles.
But since their first marches – and the government has subsequently overturned fuel taxes – their demands have widened to strengthen the purchasing power of citizens and allow for popular referendums.
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