While civil unrest due to the irredentist/interventionist/nationalist will be severe as in OTL, frankly it will pale compared to the social unrest and consequences of the war and will die out after a little while, never reaching the level of the Biennio Rosso; said that no compensation will also mean the liberal party wrecking itself in a political civil war between neutralist and interventionist.
No respecting of art.7, even with some colonial compensation taken by the French or British like Tunisia or Malta will basically mean an official death of the Alliance with Germany and Austria-Hungary, sure Wien (that was already thinking of renege the proposed agreement about compensation in OTL the moment the war was over) and Berlin can thought that such alliance with Italy postwar will not be important and with a certain degree of reason; still i expect a big crisis between Italy and Austria if this happen and frankly A-h will be in a bed shape due to the war and Germany population will not surely want be involved in another war for A-h sake.
Albania will be an enormous sore spot between A-H and Italy due to the strategic position and frankly the only way that i see Italy get along with this, expecially due to the fact that in OTL at least she controlled Vlore and surrounding in 1915 due to the collapse of the Albanian state; it's an exchange of Albania and Montenegro regarding the sphere of influence.
The situation in Lybia can create incidents and tension between Italy, the British and the Ottoman (and Italy will still possess the Dodecanese as i don't think Rome will give them up if there is no compensation) due to the Senussi revolt; still Italy is the only fresh great power and nobody will want press to much expecially due to having more important internal problem, plus Regia Marina will be at least the second navy in the Meditterean.
Ethiopia will not probably invaded, still i expect Rome to try very hard to increase her economic influence in the zone and reach somekind of agreement with Abyssinia regarding the Somalian border, basically this
https://en.wikipedia.org/wiki/Italo-Ethiopian_Treaty_of_1928 but 10 year earlier and if there is somekind of civil strife in Abyssinia maybe slightly more favorable to Italy (but not by much).
Frankly i see the Entente trying to buy italian alliance or at least benevolent neutrality/support by giving them some colonial and cultural concession (basically what given in OTL plus the Italo-French treaty of 1935 ); still Italian neutrality in even the second great war will needed some concession from the CP and due to the previous behaviour the payment will need to be up front and a little more of what offered in WWI, expecially due to the fact that i don't see A-H survive much after the second great war and Italy will press greatly for concession...and honestly by this time even Berlin will be too tired to continue to support them with blank check after blanck check.
No Benny mean also no idiotic economic management done by the fascist and the industrial groups like Ansaldo will be keep in a shorter lash, sure they will be given sweet contract...but with less blank check even due to the possible scandal and pubblic opinion reaction; plus any other goverment will have a lot less hard on over autarky. In all probability we will have the same type of tank of OTL but done with better material and with welded armour instead of riveted.
Regarding italy focusing on type of weapon necessary to the colonial conflicts, well war with A-H will be always in the mind of any politician and military planner, relations will not be good and many in Wien will think that a 'short and victorious war' against the last big problem to the Empire will solve everything
No respecting of art.7, even with some colonial compensation taken by the French or British like Tunisia or Malta will basically mean an official death of the Alliance with Germany and Austria-Hungary, sure Wien (that was already thinking of renege the proposed agreement about compensation in OTL the moment the war was over) and Berlin can thought that such alliance with Italy postwar will not be important and with a certain degree of reason; still i expect a big crisis between Italy and Austria if this happen and frankly A-h will be in a bed shape due to the war and Germany population will not surely want be involved in another war for A-h sake.
Albania will be an enormous sore spot between A-H and Italy due to the strategic position and frankly the only way that i see Italy get along with this, expecially due to the fact that in OTL at least she controlled Vlore and surrounding in 1915 due to the collapse of the Albanian state; it's an exchange of Albania and Montenegro regarding the sphere of influence.
The situation in Lybia can create incidents and tension between Italy, the British and the Ottoman (and Italy will still possess the Dodecanese as i don't think Rome will give them up if there is no compensation) due to the Senussi revolt; still Italy is the only fresh great power and nobody will want press to much expecially due to having more important internal problem, plus Regia Marina will be at least the second navy in the Meditterean.
Ethiopia will not probably invaded, still i expect Rome to try very hard to increase her economic influence in the zone and reach somekind of agreement with Abyssinia regarding the Somalian border, basically this
https://en.wikipedia.org/wiki/Italo-Ethiopian_Treaty_of_1928 but 10 year earlier and if there is somekind of civil strife in Abyssinia maybe slightly more favorable to Italy (but not by much).
Frankly i see the Entente trying to buy italian alliance or at least benevolent neutrality/support by giving them some colonial and cultural concession (basically what given in OTL plus the Italo-French treaty of 1935 ); still Italian neutrality in even the second great war will needed some concession from the CP and due to the previous behaviour the payment will need to be up front and a little more of what offered in WWI, expecially due to the fact that i don't see A-H survive much after the second great war and Italy will press greatly for concession...and honestly by this time even Berlin will be too tired to continue to support them with blank check after blanck check.
Hey, maybe a neutral Italy might be able to produce some decent tank! Okay maybe not, considering their industrial base and their economy even in TL-191, but a man can dream, right?
But in all honesty, if Italy remains neutral, I think we're seeing a focus toward colonial type conflicts perhaps, in which vehicles and equipment are geared toward that kind of thing. Armored cars and specific kinds of tanks.
No Benny mean also no idiotic economic management done by the fascist and the industrial groups like Ansaldo will be keep in a shorter lash, sure they will be given sweet contract...but with less blank check even due to the possible scandal and pubblic opinion reaction; plus any other goverment will have a lot less hard on over autarky. In all probability we will have the same type of tank of OTL but done with better material and with welded armour instead of riveted.
Regarding italy focusing on type of weapon necessary to the colonial conflicts, well war with A-H will be always in the mind of any politician and military planner, relations will not be good and many in Wien will think that a 'short and victorious war' against the last big problem to the Empire will solve everything