After the First World War "liberal" Italy was beset with numerous problems from many different aspects of the political system. This was due to what was called the, "mutilated victory". Italy had been left with over six, hundred, thousand dead, huge debts from the war leading to a dramatic financial change in Italian lifestyle and the rewards offered from the, "Treaty of St Germain" did not appease the Italian public nor their prime minister of their grievances. A majority of Italian public support had been achieved through the desire to win back Italia Irradenta from the Austro-Hungarian Empire.The, "St Germain Treaty" was signed on the tenth of August 1919. It met all the nationalist demands returning Trentino, South Tyrol and Istria to Italy.

So it would seem this would have pleased the public however it did not create that effect. Italy in gaining all this land still felt cheated because the promises made to them in the, "Treaty of London" had not been followed through due to the American system of self-determination which had awarded Dalmatia to the new Yugoslav state and had also not given them Colonies which too had been promised.Whilst their demands had been met and they claimed more land than many would have expected them to under self-determination the public were still very much displeased. In the negotiations the Italian Prime Minister Orlando stormed out discontented, this had no effect on the proceedings and the Italian public saw this a serious weakness on behalf of the liberal government.

Of all the treaties signed during the war Italy had never been promised Fiume.Nationalists saw this as an opportunity to take a stand in the progress of Italian as a powerful nation and to rectify the liberal governments mutilated victory. This was headed by a man named Gabrielle d'Annunzio. He was an extremely right-wing in his political opinion, a very impressive public speaker and creator of public support. He is regarded was regarded as a serious contender to Mussolini's later achieved position.

He marched on Fiume and captured the mainly Italian speaking port in September 1919.It emphasised the weakness of the liberal government in taking no stand towards d'Annunzio. Eventually he was removed from Fiume by the new Giolottian government in December 1920 yet by this time the effect of his stand had had lasting social effects in Italy towards the progress of fascism. Those who saw the weak government as an embarrassment were inspired by this fascist stronghold in Fiume and were drawn in by the promises d'Annunzio in his brief command of a state emphasising the ideology of fascism. After the war the desires of the nation was for new direction of the Italian state.

Yet Italy publicly was still a mass of divided beliefs, leading to the problem of which direction to take. Whilst many had regarded d'Annunzio's stand as a further point in the need for change they still saw fascism as the wrong approach. The socialists had seen an increase of support and there was an increasing liberal fear of a socialist revolution. Workers were striking and taking over factories and returning Southerners were taking land from landowners and throughout this the government kept bending legalising the taking of land and promising reforms to the factory workers.Economically Italy suffered greatly too. The industrial boom during the war years had finished and left Italian industry in recession.

There was permanent inflation and many Italians struggled to maintain their lifestyle especially the self-employed petty bourgeoisie who could not demand any wage increases through a trade union and were left to fend for themselves. The government had taken loans from people during the war and in returning the money inflation had dramatically lowered it's value many were left feeling exploited.Post-Italy was under fire from all directions the threat of socialist revolt had risen; the government had weakened and again changed hands from Orlando to Giollotti. The economy had been left in tatters with over two million demobilised soldiers left unemployed, increases in inflation. The mutilated victory and its repercussions had caused social change amongst Italians now leaning far more towards fascism or socialism.

Italy was a divided nation with a angry public force inside. Italy was heading for change it was just a matter of how and how long.