@Carolina:
So this rule seems to highly benefit the Axis, right? What is the balance for the Allies? Also, when France is liberated, do they get the 12 IPC build bonus - or is that removed?
Benefit, yes. Highly? I wouldn’t go that far. The Vichy can be both a help and a hindrance to the Axis, depending on how they are used/abused.
The Allies in return get a faction modeled after China (Free France) that can be crucial in the fight for Cairo, in addition to being a general thorn in the side of the Axis.
As for when France (Paris) is liberated, the Vichy government disbands, existing Vichy territories and units revert to mainline France, and rejoin the Allies. If Paris falls again, after being liberated, Vichy doesn’t rise again - France functions from that point as any other power who lost their capital.
The one-time free 12 IPC worth of units upon the liberation of Paris stands as in OOB.
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Vichy can actually be quite a liability to the Axis if the Allies go straight for Paris. If they manage to take Paris, even for a part of a round, all the work an Axis player put into the Vichy would switch back to the Allies for the rest of the game.
Which… in trying to prevent a potential Paris strike, Germany would be forced to spend resources that would otherwise go to stomp the Russians.