Austria, who has now split off from Hungary, expresses their anger at Hungary and says that they will pay for their betrayal. Hungary states that they will not stand for Austria anymore. Hungary, which at this point was still technically on the side of the Central Powers, changes to their own side, independent of the Central Powers or the Entente. This revolution against Austria inspires the Czechs, Romanians, Serbians, and Montenegrins to rise up in small pockets. Austria is surprised, and tells Germany that they could not win the war. Germany concurs with Austria's statement, but he believes that he can win the war alone. At this time, Germany, along with their puppet states of Poland, Byelorusia, Lithuania, and the Baltic Duchy, switch sides, leaving Austria to deal with their internal strife alone. By 1920, the whole of Austria has been occupied. Austria concedes. The nations of Czechia, Moldavia, Romania, Croatia, Slovenia, and Bosnia, along with a slightly expanded Serbia and Montenegro, gain independence. Germany occupies Austria proper, while Italy annexes Istria and Dalmatia. With Germany versus France and Britain being the only belligerents left, a white peace is agreed to.
Britain recognizes the sorrow and pain of the war. Italy states that it could have been worse, but they did in fact win the war. Britain makes a startlingly accurate prophecy, stating that "our countries will no doubt fall into extremism." Italy says that they can fight the extremism. Britain and Italy plan to work together to preserve the order.
The Russian Soviet Federative Socialist Republic is relieved that the war is over, as they can now "spread the revolution far and wide". They recognize that they are not in a position to due that, so they will have to influence governments instead. The Don Cossacks are scared of Russia. However, Hungary states that they do not have to fight Russia alone, and that the Eastern Europeans will stick together. Hungary asks who would like to join. Slovenia, Croatia, Serbia, Hungary, Moldavia, Ukraine, and the Don Cossacks form an alliance called Intermarium.
Alexandre Millerand says the stresses of the war have taxed him, and that drastic defense measures must be made. German recognizes their hegemony over Europe. At a party celebrating said victory and hegemony, Kaiser Wilhelm II is poisoned. His son, now Kaiser Wilhelm III, tries to inquire as to what happened, but notices that people are storming the palace, and recognizes the need to leave. The German Empire is replaced with the German Spartacist Union. The new leader of Germany, Rosa Luxemburg, says the word, "perfect".
- Although it seems that the German Empire has fallen, it has actually fled into exile in Africa. The German Empire-in-Exile is formed, although it is often called "elephant Germany" due to their flag.
- This is noted in a conversation between Spartacist and Imperial Germany in the next episode.