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What would happen to Italy in a German win scenario where the Italians still stuff around like OTL?

How big would they get and how Puppeted would they be?

EDIT Germany wins in Russia by 1942 without being turned back at Moscow. However Italy still stuffs up in North Africa and the Balkans. Germany without the Eastern front builds up the Luffwatte and by 1944 The UK is driven out of North Africa and Spain has joined the Axis to close off the only other way into the MED. The UK is Also getting Smashed in the Air on a second BOB

The UK then sues for peace keeping most of their land except in North Africa and the Middle East
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