Coat of Arms of the Independent State of Croatia

As in our timeline Croatia desired independence in the wake of a failed war effort. The Ustase, supported by Italy, take control of the Kingdom of Slovenes, Croats and Serbs as the Greater Austrian Empire crumbles. Renaming the country the Independent State of Croatia and abandoning the idea of Slavic brotherhood Croatia agrees to territorial concessions to Italy in exchange for support. This also leads to the election of Prince Aimone, Duke of Spoleto as King of Croatia under the regnal name of Tomislav II.