I think Italy was too central to where the war was to remain neutral indefinitely.Heck think of all the promises made to many nations/groups in both world wars, the Vietnamese, Arabs and others were promised independence.
Italy probably would have been better off however importing goods and selling like the Portugese did in WW2 than get involved in actual combat.
One of the concepts behind the sacro egoismo policy that plunged Italy into the war in the first place was that the physical location of Italy, and of the factions that were doing the fighting, made neutrality virtually impossible. The opportunities involved Italy's strategic location made them good real estate for a European war and also a threat to whichever side they were not on. so the answer to which side they were on could not be "neither side" because both factions would interpret that as an indirect threat.
Sooner or later someone was going to pull them off the fence because despite not being a great power the location of Italy made opportunities involved in having the Italians on their side of the war sufficiently great, and the longer they tried to play both ends against the middle, the more and more likely a preemptive strike could be launched by one side or the other out of fear or misunderstanding, similar to certain aspects of German belligerence against the then-neutral US but more intense for Italy being literally right in the middle of things.
So that gives you two choices -- stand in full mobilization for years to ward off such preemptive strikes, draining your finances for no gain at all, take the best deal you can from whichever faction you can and run to war yourself on your own choice. On the choice of which faction to join, I think Italy frankly assessed the enemy they would be asked to fight if they joined each faction and decided to fight Austria rather than France, and that that was the correct tactical assessment on their part. As bad as the Isonzo river was, the western passes into France had been one of the toughest invasion routes in history since the days of Hannibal and the army of a great power stood at the other end. The crumbling legions of the Hapsburgs must have seemed a pushover by comparison.
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