Italian East Africa Ababa, to proclaim an empire by May 1936, making Ethiopia part of Italian East Africa. The Italian victory in the war coincided with the zenith of the international popularity of dictator Benito Mussolini's Fascist regime, during which colonialist leaders praised Mussolini for his actions. Mussolini's international popularity decreased as he endorsed the annexation of Austria by Nazi Germany, beginning a political tilt toward Germany that eventually led to the downfall of Mussolini and the Fascist regime in Italy in World War II. On 10 June 1940, Italy declared war on Britain and France, which made Italian military forces in Libya
Italian East Africa that was the only one in all Africa. However Ethiopia and Africa Orientale Italiana (AOI) proved to be extremely expensive to maintain, as the budget for the fiscal year 1936-37 had been set at 19.136 billion lira to create the necessary infrastructure for the colony. At the time, Italy's entire yearly revenue was only 18.581 billion lira. The architects of the Fascist regime had drafted grandiose urbanistic projects for the enlargement of Addis Ababa, in order to build a state-of-the-art capital of the "Africa Orientale Italiana", but these architectural plans -like all the other developments- were stopped by World War