The Austro Hungarian Empire survived the Great War intact due in part to it's switch in sides near the end to help destroy the Ottoman Empire and it's close relations with Tsarist Russia. Under king Karl I, it has prospered by playing both sides of the Russian conflict, while keeping the Grecian/Macedonian civil war burning brightly. By selling weapons and mercenaries to all sides, the Austro-Hungarian Empire has grown wealthy and powerful.

The Austrian Empire has long been in a historical rivalry with Italy, but with the rise of Fascism there, is somewhat at an impasse. Italy was an allied nation in the Great War while Austria-Hungary was a belligerent. The recent alliance of Italy to Germany and the rise of the Fascists, has Emperor Karl I very concerned, given their anti-noble focus, a view that exceeds even Nazi Germany's push to move the aristocracy from power. This shift could push Austria-Hungary into a forced alliance with Great Britain, or a more direct alliance with the Tsarist Russian forces, for its own survival as a power.

Austria Hungary finds itself in a very precarious position from which it may be hard to extract itself and retain its sovereignty.

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