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I've initially intended to post this in the ASB forum (given that I'm not sure whether some of my demands are 'merely' implausible or just flat out impossible) but eventually decided to leave it here.

Your mission, should you accept it, is to put forth a general framework that would have Italy accept a downgrade in power status, from a world to a regional level, with a PoD no earlier than 1917. I'm not interested in a full-narrative TL; frankly, I never bother reading them (for some reason). I'm just interested in a sort of a brainstorming discussion (like that based around a TL).

What I want however, is a general train of events that leads to Italy abandoning the Horn, the Dodecanese, concentrating on developing South Italy, Sicily and Libya (campaign to improve literacy level!), relinquishing irredentist claims on the Dalmatic coast beyond Trieste (though adding more strategic depth to the coast around it and especially Duino) and gaining Malta (yeah, I know, this one may be pushing it too far, since it had massive strategic importance to the British; as I said, however, I'm fine with 'merely' implausible, after all, RL is massively implausible sometimes).
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