History
How Mussolini's deal with the Vatican created Vatican City
HERE’S THE INTERESTING PART
When you're trying to establish a brutal fascist regime, it helps to have God on your payroll. In 1929, Mussolini signed the Lateran Treaty with the Holy See. In exchange for the Pope recognizing Italy's fascist government and staying out of politics, Mussolini gave the Church immense financial compensation, tax exemptions, and carved out the fully independent micro-nation of Vatican City directly inside Rome.
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