First Steps
The Fascist government began its reign in an insecure position. Coming to power in 1922, after the March on Rome, it was a minority government until the 1923 Acerbo Law and the 1924 elections, and it took until 1925, after the assassination of Giacomo Matteotti, to establish itself securely as a dictatorship.
Economic policy in the first few years was largely liberal, with the Ministry of Finance controlled by the old liberal Alberto De Stefani. The government undertook a low-key laissez-faire program - the tax system was restructured (February 1925 law, 23 June 1927 decree-law, etc.), there were attempts to attract foreign investment and establish trade agreements, efforts were made to balance the budget and cut subsidies. The 10% tax on capital invested in banking and industrial sectors was repealed, while the tax on directors and administrators of anonymous companies (SA) was cut down by half. All foreign capital was exonerated of taxes, while the luxury tax was also repealed. Mussolini also opposed municipalization of enterprises.
The 19 April 1923 law transferred life insurance to private enterprise, repealing the 1912 law which had created a State Institute for insurances and which had envisioned to give a state monopoly ten years later. Furthermore, a 19 November 1922 decree suppressed the Commission on War Profits, while the 20 August 1923 law suppressed the inheritance tax inside the family circle.
There was a general emphasis on what has been called productivism - national economic growth as a means of social regeneration and wider assertion of national importance.
Up until 1925 the country enjoyed modest growth but structural weaknesses increased inflation and the currency slowly fell (1922 L90 to £1, 1925 L145 to £1). In 1925 there was a great increase in speculation and short runs against the lira. The levels of capital movement became so great the government attempted to intervene. De Stefani was sacked, his program side-tracked, and the Fascist government became more involved in the economy in step with the increased security of their power.
In 1925, the Italian state abandoned its monopoly on telephones' infrastructure, while the state production of matches was handed over to a private "Consortium of matches' productors."
Furthermore, various banking and industrial companies were financially supported by the state. One of Mussolini's first act was to fund the metallurgical trust Ansaldo to the height of 400 millions Liras. Following the deflation crisis which started in 1926, banks such as the Banco di Roma, the Banco di Napoli or the Banco di Sicilia were also assisted by the state. In 1924, the Unione Radiofonica Italiana (URI) was formed by private entrepreneurs and part of the Marconi group, and granted the same year a monopoly of radio broadcasts. URI became the RAI after the war.
Read more about this topic: Economy Of Italy Under Fascism
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“Perhaps of all our untamed quadrupeds, the fox has obtained the widest and most familiar reputation.... His recent tracks still give variety to a winter’s walk. I tread in the steps of the fox that has gone before me by some hours, or which perhaps I have started, with such a tip-toe of expectation as if I were on the trail of the Spirit itself which resides in the wood, and expected soon to catch it in its lair.”
—Henry David Thoreau (1817–1862)
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emptiness running down steps toward the garden,
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—Wislawa Szymborska (b. 1923)