By 1943, Italians had seen shortages in basic goods and supplies requiring rationing as their merchant marine had been decimated by the war. This led to a lot of grumbling about the war and its effects on Italy. Mussolini’s popularity had begun to wane. He had convinced Italians that the Allies would never bomb the eternal city of Rome. Then on 19 July 1943, the U.S. bombed the Rome railway yards.
Both President Franklin Roosevelt and British Prime Minister Winston Churchill had made a public appeal for Italians to reject Mussolini and save their country. The Allies by this time had invaded Sicily, and thanks to a clever deception, Hitler thought it initially a diversion. The Axis had been furthered weakened by its defeat in North Africa which had seen losses by both German and Italian forces. The advance of the Allied troops shook the Italian government. The bombing of Rome really caused panic in Rome as people went out into the streets.
It was much worse though as panic gave way to anger at Mussolini. People started destroying effigies of the dictator. And oddly, there was actually celebration of the attack as it was seen as leading to Mussolini’s demise. Hitler met with Mussolini to shore up his confidence after the attack. The attack had shaken him as well. Mussolini appeared unusually quiet in the meeting (he spoke poor German) and relied on the transcript later. Hitler tried to restore his confidence worried he might cave in and seek an armistice with the Allies. In the end, Mussolini agreed to continue the war though by this time he knew the truth. The Italian army was beaten and there was no way they could win the war. He could not tell that to Hitler fearing what he might do in response.
Hitler for his part was concerned that either Mussolini would surrender, or his own people might remove him. He quietly ordered Rommel to take control of the Greek islands in case something went wrong in Rome. The Germans would be ready to pounce when it did. And events happened faster than expected. Within a week the Fascist Grand Council would relieve Mussolini and he was put under arrest by the King.