The Liberal Giovanni Giolitti became Premier of Italy again in June 1920; this signalled a hardening of official attitudes to D'Annunzio's "coup". On 12 November, Italy and Yugoslavia concluded the Treaty of Rapallo, which envisaged Fiume becoming an independent state, the Free State of Fiume, under a government acceptable to both powers. D'Annunzio's response was characteristically flamboyant and of doubtful judgment: his declaration of war against Italy invited the bombardment by Italian royal forces which led to his surrender of the city at the end of the year, after five days' resistance (known as Bloody Christmas). Italian troops freed the city from D'Annunzio's militias in the last days of December 1920. After a world war and additional two years of economic paralysis the city economy was nearing collapse and the population was exhausted.