So far it was believed that the Catholic Church was against fascism during the 20s and 30s, when Mussolini came to power in Italy. Newly revealed documents state otherwise. NPR had an interview with David Kertzer, the author of the new book The Pope and Mussolini: The Secret History of Pius XI and the Rise of Fascism in Europeand here are some interesting points from the transcript.
On the pope’s interest in allying with Mussolini
The popes had seen the Italian government as enemies, basically. They had rejected the notion of the separation of church and state, they had lost their privileged position in society, and they had always called that system illegitimate. Pius XI at least began to see the possibility that Mussolini might be the person sent by God — the man of providence — as he would later refer to him … who would reverse all of that, who would end the separation of church and state, restore many of the prerogatives of the church and at the same time, as the Pope was very worried about the rising socialist movement … saw Mussolini as the man who was the best bet, perhaps, to prevent a socialist takeover of Italy.
On what the church got out of this alliance
The church got financial benefits, considerable payments by the state to the Catholic clergy. … They got, for example, as the fascists were forming fascist youth groups, which millions of youth in Italy were a part of in those years, the church was given chaplains to all the local chapters of the fascist youth groups so that they were able to influence the youth, which was very important to them. They also got as part of the Concordat, the fascist imposition of teaching religion in elementary schools, which was one of the first things Mussolini did to ingratiate himself when he came to power — to extend that to secondary schools as well so that all the school children in Italy were taught Catholic religion in their school.