Italian Balearics and Ceuta

One of Italy's goals with the Spanish intervention was an annexation of Ceuta and the Balearic Islands.

The Italians directly occupied Majorca and the Italian administrator there went so far as to start renaming streets. When a continental was looming, the Italians opted to withdraw and prepare their forces for potential conflict to the east.

What if the Italians played Switzerland in the broader great power political struggle and focused on consolidating their Spanish gains?
 
I doubt that would sit well with Franco or anyone else. The best way for this to happen is with republicans winning the civil war.
 
I doubt that would sit well with Franco or anyone else. The best way for this to happen is with republicans winning the civil war.

I concur. If the Republicans win, the Italians can stay in the Balearics and Ceuta. That would result in something like the occupation of Sikkim and Aksai Chin by China, which India doesn't recognize but is unable to do anything about. Spain wouldn't recognize the annexation of the Balearics and Ceuta either, but for lack of a blue water navy wouldn't be able to retake them through force of arms.

If Franco wins as IOTL, Mussolini would be wise to return these territories. They're not worth alienating Spain, which will definitely NOT enter the Italian sphere of influence if Italy overstays its welcome on Spanish territory. Italy will still be able to exercise informal influence on the Balearics and Ceuta, assuming neutrality in WW 2 while quietly building the 'Mare Nostrum'. It could easily station a naval squadron at Mallorca as part of an alliance between Rome and Madrid.
 
If Franco wins as IOTL, Mussolini would be wise to return these territories. They're not worth alienating Spain, which will definitely NOT enter the Italian sphere of influence if Italy overstays its welcome on Spanish territory.

Also in that case I doubt nationalist Spain would repay any of the debt incurred during the war.
IIRC the overall cost was 8 billion lire for Italy of which 5 were repaid OTL in long installments after WW2.
 
Yep, the only way that i see Italy getting that territory is a Republican victory, with the communist or the pro-moscow group being a big part of the leaderships, in that case London (and Paris) can see italian control of that place as the (barely) lesser evil
 
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