How did World War I help create conditions for fascism in Italy?

World War I created a volatile environment in Italy that proved highly favorable for the rise of fascism. The conditions were primarily driven by deep-seated social, economic, and political instability following the conflict:

• The Mutilated Victory: Despite being on the winning side, many Italians felt betrayed by the postwar peace settlements. Nationalists argued that Italy had been denied its rightful territorial gains, such as Dalmatia and Fiume, leading to the perception of a "mutilated victory" and fueling intense nationalist agitation.1
• Economic Crisis: The war left Italy with massive debt, rampant inflation, and high unemployment as returning soldiers struggled to find work. Industrial bankruptcies and the devaluation of the lira further eroded middle-class confidence in the existing government.2
• Social Unrest: The period known as the biennio rosso ("two red years," 1919–20) saw widespread strikes, factory occupations, and land seizures. This climate of potential socialist revolution terrified the middle class and landowners, who began to view fascism as a necessary bulwark against communism and radical labor movements.32
• Political Weakness: Postwar coalition governments were perceived as weak and ineffective at managing the economic crisis or curbing political violence, creating a power vacuum that Benito Mussolini exploited by positioning himself as a strong, decisive leader.32