power with the monarchy, Mussolini ruled as a dictator. Under his rule, Italy's military was built up and democracy became a thing of the past. One important diplomatic achievement of his reign, however, was the Lateran Treaty, between Italy and the Pope, in which a small part of Rome where St. Peter's Basilica and other Church property was located was given independence as Vatican City and the Pope was reimbursed for lost Church property. In exchange, the Pope recognized the Italian government. Another Fascist party, the Nazis, would take power in Germany. The Nazis were similar to Mussolini's Fascists but held many views of their own. Nazis were obsessed with racial theory, believing Germans to be part of a master race, destined to dominate the inferior races of the world. The Nazis were especially hateful of Jews. Another unique aspect of Nazism was its connection with a small movement that supported a return to ancient Germanic paganism. Adolf Hitler, a World War I veteran, became leader of the party in 1921. Gaining support from many disillusioned Germans, and by using intimidation against its enemies, the Nazi party had gained a great deal of power by the early 1930s. In 1933, Hitler was named Chancellor, and seized dictatorial power. Hitler built up Germany's military in violation of the Versailles Treaty and stripped Jews of all rights in Germany. Eventually, the regime Hitler created would lead to the Second World War. In Spain, a republic had been set up following the abdication of the king. After a series of elections, a coalition of republicans, socialists, Marxists, and anticlericals were brought to power. The army, joined by Spanish Conservatives rose up against the republic. In 1939 the Spanish Civil War ended, and General Francisco Franco became dictator. Franco supported the governments of Italy and Germany, although he was not as strongly committed to Fascism as they were and instead focused more on restoring traditionalism and Catholicism to dominance in Spain. Second World War and its aftermath: 1939–1950 The late 1930s saw a series of violations of the Versailles Treaty by Germany, however, France and Britain refused to act. In 1938, Hitler annexed Austria in an attempt to unite all German-speakers under his rule. Next, he annexed a German-speaking area of Czechoslovakia. Britain and France agreed to recognize his rule over that land and in exchange Hitler agreed not to expand his empire further.