User blog comment:Cosmocat01/Alternate Europe: 1960/@comment-35861815-20180612221110

After Operation Sea Lion worked out and Gemany occupied England, England was turned into a fascist regime led by Oswald Mosley and the monarchy was kicked out. Also, Iceland was taken in the final peace treaty because Denmark had fell to the Nazis. Ireland took Northern Ireland, and Iceland was turned into an autonomous protektorat of the Reich. So that's why it makes sense.