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well actually, IRL, after the coup d'etat in 41, yugoslavia remained in an "alliance" with germany until germany invaded them. but in game terms, that would be impossible to do, because nations at war cant leave their alliance, so the coup basically does nothing except add flavor.
Aha. So the correct response is to boot them out of the axis and DOW on them?
They're pretty useless anyhow. It's so boring to keep on forking over infantry techs and doctrines piecemeal to the minor allies to make their expeditionary forces actually worth something.
thats why you shouldnt take all those countries into the axis. i usually only take japan to fight the russians and the british in the far east. and i annex all the others.
Just to add... thanks to bugged command "peace" it's very hard to recreate what really happened in Yugoslavia. We got serious problems with this any any other "alliance-switches" in CORE mod...