Italy's Reparations and Consequences After World War II

World War II had profound global implications, and Italy was no exception. The Armistice of 1943 marked the official surrender of Italy to the Allies, but the outcome of the conflict for Italy was far from lenient. In addition to the harsh diplomatic and territorial consequences, Italy was also required to pay significant reparations to the countries it had invaded and occupied during the war. Let's delve into the details of these reparations and territorial changes.

Reparations Paid by Italy

One of the most significant post-war tasks for Italy was the payment of reparations to several countries, including:

Yugoslavia (125 million USD) Greece (105 million USD) Soviet Union (100 million USD) Ethiopia (25 million USD) Albania (5 million USD)

These reparations were to be paid in goods and services over a seven-year period. The amounts were valued in US dollars at the gold parity of the US dollar on 1 July 1946, which was 35 dollars for one ounce of gold.

Territorial Changes and Newly Established States

The Peace Treaty of 1947 imposed several territorial changes on Italy, including:

Arab North Africa

Japan transferred the colonial possessions of Libya, Eritrea, and Somalia to the Allies, of which Italy was in charge. On 24 December 1951, Libya declared its independence as the United Kingdom of Libya. Eritrea was federated with Ethiopia on 11 September 1952 and gained its independence de facto on 24 May 1991 and de jure on 24 May 1993. Italian Somaliland, which had been under British administration, became a UN Trust Territory under Italian administration before merging with British Somaliland on 1 July 1960 to form the Somali Republic.

Southern Europe

Italy ceded the Adriatic islands of Cherso, Lussino, Lastovo, and Pelagosa; Istria (south of the river Mirna); the enclave of Zara in Dalmatia; the city of Fiume; and most of the Slovenian Littoral to Yugoslavia. The Dodecanese islands were transferred to Greece. Further to France, Briga and Tenda, along with minor border revisions, were also transferred. The city of Albania received the island of Saseno, and Trieste and the surrounding area were incorporated into a new independent state called the Free Territory of Trieste. The Memorandum of Understanding of London regarding the Free Territory of Trieste ceded the mandate of the Yugoslav Army to the Yugoslav Government in 1954.

Military Restrictions and Limitations

The post-war treaty also imposed strict military restrictions on Italy, including:

Demolition of permanent fortifications along the Franco-Italian and Yugoslav-Italian frontier. Ban on building or experimenting with atomic weapons, guided missiles, guns with a range of over 30 km, non-contact naval mines, torpedoes, and manned torpedoes. Limitation of the Italian military to 200 heavy and medium tanks. Ban on former Blackshirts and National Republican Army officers and non-commissioned officers from becoming officers or non-commissioned officers in the Italian military, except those exonerated by the Italian courts. Reduction of the Italian navy, with some warships awarded to the Soviet Union, the USA, the UK, and France. Italy was ordered to scuttle all its submarines and was banned from acquiring new battleships, submarines, and aircraft carriers. The navy was limited to a maximum force of 25,000 personnel. Limitation of the Italian army to 185,000 personnel plus 65,000 Carabinieri, for a maximum total of 250,000 personnel. Limitation of the Italian air force to 200 fighters and reconnaissance aircraft, with 150 transport, air-rescue, training, and liaison aircraft, and a ban on owning and operating bomber aircraft. The number of air force personnel was limited to 25,000.

Article 17 of the treaty also banned fascist organizations in Italy, signaling a major political shift following the war.

The peace treaty and its consequences redefined Italy's role in Europe and the Mediterranean, impacting its social, political, and economic landscape for decades to come.