The Lateran Treaty Creates Vatican City

After the Kingdom of Italy annexed the Papal States and then Rome itself in 1870, successive popes refused to recognise the Italian state and remained 'prisoners in the Vatican', forbidding Catholics from participating in national politics. The dispute deprived Italy of full Catholic legitimacy and the papacy of any territorial base. Mussolini, who had no personal religious commitment but a clear interest in the Church's endorsement, negotiated a settlement in three parts: a treaty recognising Vatican City as a sovereign state, a financial convention compensating the Holy See for the lost territories, and a concordat making Catholicism the state religion and giving the Church wide authority over marriage and education. Pius XI described Mussolini as 'a man sent by Providence'. Relations deteriorated within three years over control of youth organisations, and further over the 1938 racial laws.

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