Well, German folksongs were very popular among Nazis, young and old, during the 30s and 40s. This was probably true in Italy and in Franco's Spain too. What makes you think that folk music and fascism are mutually exclusive? One of the notable features of fascism is a fierce pride in (many of) the nation's old cultural traditions, one of which is traditional folk music. Part of the appeal of fascism is that it invokes old heroic national myths or archetypes and attempts to meld them with new military technology, for example.