On 18 March 1932, the new government suspended the Public Safety Act, lifting the ban on a number of organisations including the Irish Republican Army.
The IRA and many released prisoners began a "campaign of unrelenting hostility" against those associated with the former Cumann na nGaedheal government.
Frank Ryan, one of the most prominent socialists in 1930s Ireland, active in both the Republican Congress and the IRA, declared "as long as we have fists and boots, there will be no free speech for traitors".
O'Higgins was joined in the organisation by fellow Cumann na nGaedhael TDs Ernest Blythe, Patrick McGilligan and Desmond Fitzgerald.
[13] The historian Mike Cronin believes the Blueshirts regularly embellished their numbers and the actual amount was closer to 8,000 at that point.
He re-modelled the organisation, adopting elements of European fascism, such as the straight-arm Roman salute, the wearing of uniforms and huge rallies.
It was to proceed to Glasnevin Cemetery, stopping briefly on Leinster lawn in front of the Irish parliament, where speeches were to be held.
On 22 August 1933 the Fianna Fáil government, remembering Mussolini's March on Rome, and fearing a coup d'état, invoked article 2A of the constitution and banned the parade.
[9] Decades later, de Valera told Fianna Fáil politicians that in late summer 1933 he was unsure whether the Irish Army would obey his orders to suppress the perceived threat, or whether the soldiers would support the Blueshirts (who included many ex-soldiers).
O'Duffy was chosen as leader instead of Cosgrave and MacDermot in order to avoid the idea that Fine Gael would simply be a continuation of Cumann na nGaedhael.
However, this prompted elements of Fine Gael such as Ernest Blythe, Michael Tierney and Desmond FitzGerald to begin working to remove O'Duffy from power.
When O'Duffy left Fine Gael, he attempted to resume this position, however, Cronin resisted, resulting in the Blueshirts splitting into pro-O'Duffy and pro-Cronin factions.
He then founded the National Corporate Party, and later raised an Irish Brigade that took General Francisco Franco's side in the Spanish Civil War, with disastrous results.
[28] Maurice Manning also did not consider them fascists, with their mixture of patriotic conservatism, militia activities and corporatism amounting "to no more than a kind of Celtic Croix-de-Feu",[29] and that ultimately the Blueshirts "had much of the appearance but little enough of the substance of Fascism".
They imitated some aspects of the Mussolini movement, such as the coloured-shirt uniform, Roman salute and the March on Rome; however, Historian R. M. Douglas has opined that it is incorrect to portray them as an "Irish manifestation of fascism".
[34] Fearghal McGarry of Queen's University Belfast, has suggested that while O'Duffy can be thought of as a genuine fascist, despite his role as the leader he was not representative of the bulk of the blueshirt membership, and that the degree to which the Blueshirts should be thought of as fascists has been overemphasised by Irish Republicans in order to reinforce their anti-fascist credentials during the interwar period.
McGarry has said the danger from the Blueshirts was not that they would turn Ireland into Fascist Italy, but into the Portuguese dictatorship that existed under Salazar at the time.
[36][10] On the same line, Alvin Jackson has stated that while some of the Cumann na nGaedheal leadership "flirted with paramilitarism and the trappings of fascism", in his view "O’Duffy’s fondness for outrageous rhetoric and elaborate uniforms was more O'Connellite than Hitlerian".
[38] Michael O'Riordan, an Irish anti-fascist who fought in the Spanish Civil War and led the Communist Party of Ireland for many decades, said of the ex-Blueshirts who later volunteered to fight in Spain: "I never regarded them as fascists.
"[10] In the aftermath of O'Duffy's departure from Fine Gael, most of the party settled back into "traditional" conservatism under the leadership of WT Cosgrove and James Dillon.