While the British army rebuilding itself trouble was brewing in north Africa as Italy declared war on Britain leading to border skirmishes and raids cumulating in the invasion of Egypt, the 10th army was forced to withdraw but before destroying the coastal roads. Through Lieutenant-General Sir Henry Maitland Wilson the British launched the operation compass a counter offensive that pushed the Italian army right to El Agheila the MK1 universal tank was considered an over match for the Italian tanks, the success gave to the thinking and belief that Royal Tank Regiment that manoeuvre could win battle and Jock columns were very useful this would come back to bite the British when the Africa korps arrived. The 7th Armoured Division and others that halted due to worn vehicles were pulled back for refit and also to aid in Greece.
Germany responded to the successful operation by sending their own forces to aid the Italians in form of Operation Sonnenblume under the command of general Erwin Rommel. The arrival of the Germans came at bad time vest regiment was in the Greece and more were under repair, this time Germans had improved upon their own tanks to combat the MK 1 and the Valentine the panzer three now boasted 50 mm KwK 39 L/60 long barreled high velocity cannon to meet the British on equal terms, tipping the scales. The result saw a complete revision on tactics as what worked on the Italians was poor against the Africa korps. After Operation Brevity and battle axe which only two of three objectives were met it wasn't helped by an order to withdraw. The new panzer III matched the British universal tank point for point in the huge battles, the Germans frequently lured British tanks into attacks areas with 88 batteries leading to attempts to reign in tank crews into waiting for artillery support before attacking, Greece became nothing short of a very desperate fight after the Greek military was routed it most certainly had not helped that the Metaxas Line did not have the amount troops needed the commonwealth troops were numbered by a very large degree 63,000 to the gemans 565,000. The RAF was bogged down and hampered the lack of early warning and the near continuous around the clock operation took their toll. Platamon was bloody for Germans as the new Zealand forces had their own armour support in the form three MK1 and two deacons it took heavy Luftwaffe attacks to remove the stubborn forces, the commonwealth forces did a fighting withdrawal from there to Thermopylae. On April 21st it was decided to evacuate to Crete and back to Egypt, the ports of southern were soon packed with commonwealth troops. During this time many MK I universal tank had been knocked out by Luftwaffe, German 88 and worn parts, the vanguards were very useful in the numerous rear guard actions, fast evacuations of wounded being a useful counter against German motorcycle units. But ultimately Greece fell to the Germans the bulk of the commonwealth forces escaped. Be it luck or perhaps some form foresight, crete was reinforced during greece consisting of 44 aircraft a mix of hurricanes and FAA buffalo the RAF contingent provided vital aid during the Greece. The ground forces were very small just one mechanized battalion , this was reinforced by the troops coming from Greece along with a handful of vanguards and MK I .
The Germans were aware of the RAF presence on Crete and very quickly sought to take control of the island, the launched an concentrated effort to remove the one line of defence to operation mercury, the air raids and attacks were all but drained the RAF FAA buffalo were less than useful against the new ME 109F the hurricanes were too little the Luftwaffe all but took control of the air. German intelligence had failed to take notice the battalion. Major general Bernard Freyberg had all sent his troops not just to guard the airfields but also the coast however the ratio was such the airfields had more troops than the coastal areas. May 20th was the ugliest moment for the paratroopers those operational tanks had all but caused the invasion to turn on its head. German paratroop doctrine was questionable rifles and heavier weapons were dropped in separate cases this played directly into defenders hands and Troop Carriers were used to further get men too and fro that the whole operation hinged on the gamble on hill 107 near maleme. The new Zealand forces held fast as the Germans attacked the presence of the vanguards was doubled edged sword as Luftwaffe JU 87 were called upon to remove the troubling 'metal boxes', an error caused the forces to withdraw on the second night but not before they had disabled the airfield against orders from Alexandria not to.
The Germans got the hill and a ruined airfield which somewhat hampered their reinforcements, a counter attack at night had worked only for the the British to again withdraw when the Luftwaffe appeared. The tanks and vaguards on Crete were not in the best shape nothing short of complete overhaul would have helped them. The situation was dire as even a second attempt just failed, the battle saw a commando detachment led under colonel Roberts didn't turn the battle. On May 30 the British were given the order to evacuate by the time it was complete 17,000 had been lifted off and 3,000 were forced to surrender, many more would form resistance groups, crete was under German control at a price the paratroop branch had taken a beating at the same time allied planners were impressed by operation mercury but it also showed that once the enemy recovered from the surprise they wouldn't last long this key observation would play later in 1944.
Elsewhere in north Africa the battle tilted towards the axis as tobruk was put under siege.
In June 22 1941 Operation Barbarossa was initiated the invasion of the Soviet union. The German army and strategist had seen the potential of the universal tank class and from an economic standpoint it made sense one tank that can do everything was better than spending money on several types, there was still some reservations though, the troop carrier was an incentive for the Germans to increase production of their halftracks push for greater mechanization of the armour. The panzer III was chosen for the new universal class, it was up gunned with high velocity 50mm cannon again based on the experience in France and north Africa the Soviet union best and most advanced tanks the T 34 and KV 1 were in small numbers, more so the mechanized Corp had deficiencies from poor maintenance, supply to the divisions spread out by miles. The panzer III could defeat the T26 and BT 7 with ease until encounters with the KV 1 and T 34 came frequent then the numbers were reversed the 50 mm KwK 39 L/60 could penetrate the KV 1 at close range and the Germans had better tactics which allowed a 6:1 kill ratio T 34 caused even more havoc when encountered and captured tanks were all but rushed back to Germany. Stalin traded ground for time as the Soviet moved their factories to safer areas causing further delay in deliveries as such through the lend lease the A11 MK I universal tank and later the Valentine, vanguard arrived.
The Russians were suspicious that the MK I now Matilda wasn't the latest tank (it certainly didn't look the part) in combat the Russian appreciated the 6 pounder, the suspension was very reliable but disliked the high profile, the tracks snapping and engine had problems, the A14 vanguard troop carrier created intense interest, its easy construction, maintenance and high speed saw them used in a variety of ways on the eastern front the effect they had on influencing Stalin and by extension the Soviet military was immense one tank that combined the medium and heavy saw the production slowly shift from the KV 1 to T 34 and troops could be deployed in battle alongside tanks. The eastern front became a technological race between Soviet union and Germany as each came up with a better universal tank the resulting machines would filter down to north Africa.