section_path: Industrial age/Dictatorships/Italy
section_name: Italy
paragraph_text: Italy
  
  Pope Pius XI aimed to end the long breach between the papacy and the Italian government and to gain recognition once more of the sovereign independence of the Holy See. Most of the Papal States had been seized by the armies of King Victor Emmanuel II of Italy (1861–1878) in 1860 seeking Italian unification. Rome itself was seized by force in 1870 and the pope became the " prisoner in the Vatican." The Italian government's policies had always been anti-clerical until the First World War, when some compromises were reached.
  
  To bolster his own dictatorial Fascist regime, Benito Mussolini was also eager for an agreement. Agreement was reached in 1929 with the Lateran Treaties, which helped both sides. According to the terms of the first treaty, Vatican City was given sovereignty as an independent nation in return for the Vatican relinquishing its claim to the former territories of the Papal States. Pius XI thus became a head of a tiny state with its own territory, army, radio station, and diplomatic representation. The Concordat of 1929 made Catholicism the sole religion of Italy (although other religions were tolerated), paid salaries to priests and bishops, recognized church marriages (previously couples had to have a civil ceremony), and brought religious instruction into the public schools. In turn the bishops swore allegiance to the Italian state, which had a veto power over their selection. The Church was not officially obligated to support the Fascist regime; the strong differences remained but the seething hostility ended. The Church especially endorsed foreign policies such as support for the anti-Communist side in the Spanish Civil War, and support for the conquest of Ethiopia. Friction continued over the Catholic Action youth network, which Mussolini wanted to merge into his Fascist youth group. A compromise was reached with only the Fascists allowed to sponsor sports teams.
  
  Italy paid the Vatican 1750 million lira (about $100 million) for the seizures of church property since 1860. Pius XI invested the money in the stock markets and real estate. To manage these investments, the Pope appointed the lay-person Bernardino Nogara, who through shrewd investing in stocks, gold, and futures markets, significantly increased the Catholic Church's financial holdings. The income largely paid for the upkeep of the expensive-to-maintain stock of historic buildings in the Vatican which previously had been maintained through funds raised from the Papal States up until 1870.
  
  The Vatican's relationship with Mussolini's government deteriorated drastically after 1930 as Mussolini's totalitarian ambitions began to impinge more and more on the autonomy of the Church. For example, the Fascists tried to absorb the Church's youth groups. In response Pius XI issued the encyclical Non abbiamo bisogno ("We Have No Need)") in 1931. It denounced the regime's persecution of the church in Italy and condemned "pagan worship of the State."