@vondox I’d agree with @bretters first and foremost, than one of Italy’s VP’s is not so easily achieved, for the reasons he stated. Yes, it’s possible to achieve it while neutral, but probably unlikely.
To historical realism, while I get your point, also realize the starting point of 1936. There was no guarantees at the time that Italy would join a future war. Italy wasn’t thrilled about fighting France and England, and were in fact on some what friendly terms to that point. England and France also were trying very hard to ensure Italian neutrality. So if we go off of the time frame, it’s not so unrealistic that Italy would stay neutral.
But I do get the point that it can make Italy boring. That’s somewhat a given if they stay neutral for sure. It’s probably hard to house rule something like that. I wouldn’t necessarily say it would “break the game”, but I think they designed it this way for a reason. I think in a perfect world it would be fun to have to “guarantee” Italian entry into the war, but that’s just not the case here!
I think your idea of penalizing the Allies is as close as you might get to finding a house rule that might work, though I think you need to make it a steep penalty. -10 IPP is what they suffer for attacking minor power neutrals. Attacking Italy would have to hurt more than that. You’d have to make it where the Allies are really desperate to want to do the thing that they are willing to pay the steep cost of doing so.