Explanation-WIP
It is based in an alternate future where the Italian Royal Family controlled the rise of nationalism in the 20s, pushing fascism in a different, non-racist direction, and forming a Romanesque Empire. Mussolini never comes to power and Italy fights with the allies against the Nazis. The Italians view Nazism as a perversion of fascism and disapprove of its racial ideas. Italy expands, annexing Austria, Slovenia and Liechtenstein.
Currently in Cold War and has tenuous relations with the ever-increasing Socialist Powers of Eastern Europe.