Italy neutral in WWII: the post-war effects?

First of all, Greece, Yugoslavia, Albania, and probably Bulgaria as well are spared World War II in this scenario. In turn, this would result in the Jewish populations of Greece and Yugoslavia being spared (Albania's and Bulgaria's Jews survived the Holocaust in real life) and also prevents Yugoslavia, Albania, and Bulgaria from falling under Communist rule after the end of World War II. In turn, what this would mean is that these countries would have been more prosperous right now; for instance, Bulgaria would have probably had Greece's level of prosperity right now in this scenario.

The Italian monarchy probably survives to the present-day in this scenario considering that, even with World War II, something like 46% of Italians voted to keep the monarchy. Thus, without World War II, there would probably be majority support for keeping the Italian monarchy after Mussolini's death.

The Fascists remain in power in Italy until Mussolini's death but quickly lose power afterwards--as in Spain and Portugal in real life.

Italy might be able to permanently hold on to Libya in this scenario if it is willing to give Italian citizenship and full rights and equality to the entire population of Libya. If not, though, then I'd still expect Libya to eventually become independent--perhaps after a brutal, Algerian-style war.

Italy eventually loses the Italian part of Somalia along with Eritrea and Ethiopia. However, it might have very well been able to permanently keep the Dodecanese Islands in this scenario. Greece would probably be pissed off by this, but it certainly can't fight a war with Italy and expect to win it (Greece can hold its ground against Italy in a defensive war, but an offensive war would probably be quite a different matter).