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SeedSnatcher

The bane of all farmers
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Economy is a factor I think. I was just playing as Austria and I couldn't annex 2 of my vassals, under the same circumstances as you describe, so maybe some part of it is just chance... Also, the AI might be asleep, save and reload to wake them up.
 

AndrewT

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From the EU2 Wiki:
3.4. Annex
Ah, the hard point : "how do I Diplo-Annex ?" Answer follows.

Conditions
- Relations at 190 or higher at the time of the DA : it can be lower during the wait-time.
- Length of vassalization of 10 years or more.
- The vassal must be at peace.
- Stronger economy.
- Same Alliance.
- Compatible religions : you have to be able to conclude an RM with the country (you do not NEED an RM, you only should be capable of).
- Common borders : a common border between 2 TPs at the other side of Earth is enough, but you need one. There's no way to DA island countries that don't own firm land elsewhere.

Although you must have an available diplomat, it won't be used by the attempt.