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This is meant to be the sister thread and scenario variant of a discussion where we analyzed the WWI peace treaty, interbellum world, and WWII in a TL where the CPs, thanks to CP Italy and neutral America, were victorious. In that thread, Britain got a quite favorable peace and achieved lasting detente with the CPs. It sided with the CPs or was a CP-friendly neutral when the CPs fought WWII against France, Russia, and Japan.

This other thread instead means to analyze the case where Britain gets an harsher peace treaty and remains hostile to the CPs. There is also an expanded CPs and Entente lineup. As a result, WWII (never inevitable, but it happens in this version of the TL) occurs between the CPs plus America and China and the neo-Entente Bloc of Britain, France, Russia, and Japan.

CPs: Germany, Austria-Hungary, Italy, Turkey, Bulgaria, Netherlands, Romania, Sweden, Spain

Entente: Britain, France, Russia, Belgium, Serbia, Montenegro, Japan, Portugal, Norway, Ethiopia

CP-friendly neutrals: Greece, America

PoD1: Italy bargains its belligerance for the CPs in exchange for Trento and Gorizia-Gradisca from Austria, as well as Nice, Savoy, Corsica, Tunisia from France, and a sizable part of Entente colonies. It enters the war in spring 1915 (If another PoD is used to start WWI, either it or diplomatic/military butterflies ensure that Italy, Turkey, and Bulgaria all belong in the CPs).

PoD2: Woodrow Wilson suffers a fatal stroke in 1906. A President gets elected in 1912 that keeps America committed to true neutrality. As the course of the war turns against the Entente and more neutral nations join the CPs, the USA swings to CP-friendly neutrality.

The presence of Italy in the CPs swings the course of war in their favor enough and/or incidents occur to bring Netherlands, Sweden, Romania, and latecomer Spain in the CPs. In the attempt to balance the equation, Britain brings Portugal, Norway, and Ethiopia in the Entente. Nonetheless, the CPs are able to win the war in Europe within 1917. Russia collapses to civil war and revolution, and signs a BL-type peace. The rest of the continental Entente is overrun.

The course of the war broadly follows the one described in this excellent TL, although some details diverge (e.g. late Entente offensives against Italy are bloody failures). After France and Russia collapse and Japan makes a separate armistice in 1917, Britain refuses the first peace offer. The CPs, that still have a year's worth of fighting in them, grit their teeth and pool their resources to invade Egypt, Gibraltar, Malta, Cyprus, and Persia. America has grown hostile to the British blockade and threatens military action to force it and/or allows Germany to restart USW (which it had stopped in 1915 on America's request) with its blessing. Revolts explode in India and Ireland. Exhausted and harried Britain sues for peace and is able to regain control over India, although it is forced to give independence to Ireland.

France and the Entente minors get an harsh peace, Britain loses some colonies but suffers no military limitation and pays no reparations. Japan gets a favorable peace. America annexes some Entente colonies to reward its CP-friendly stance and in homage to the Monroe doctrine.

Although it won the war, Austria-Hungary later falls prey to its internal instability fueled by the war shock, collapses in the mid-late 1920s, and is partitioned. Germany becomes a global powerhouse, Italy grows to be a major great power, Turkey, Spain, Hungary, and Sweden are regional powers in the CPs Europeanische Bund. Despite the social and poltical effects of the war and later of the Great Depression, the CPs stabilize as liberal-conservative democratic constitutional monarchies. America remains a democracy as well (if slightly more imperialist than OTL). The shock of defeat and of the GD instead make Britain (which turned the UK and the Dominions into an Imperial Federation) and Japan turn authoritarian, while France and Russia become totalitarian. Those revisionist powers, bound into a new alliance of convenience despite ideological differences and nationalist rivalries, start a new Great War against the CPs, America, and China.

A note: in the other thread, posters were able to achieve a remarkably lengthy, pleasant, and productive discussion on the topic. It is dearly hoped that we can have something similar here. Therefore, readers that harbor radical doubts on the premises of the scenario are kindly invited to not derail the thread by posting them. This includes, for example, the Brit... err, "true believers" who think the RN can starve whole continental Europe into submission.
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