The treaty is wrong on so many levels.
1- Extends Yugoslavian influence into even more territories with vastly different cultures who are going to hate them as much as their Middle-Eastern territories, if not more.
2- Extends Yugoslavian influence into territories that are impractical to defend, placing them on the level of the Commonwealth for impracticality without having the benefit of the citizens of those territories loving the prosperity you bring.
3- Starts a war 5 years after the end of WWIV
4- Vastly increases the tensions between the Commonwealth, Yugoslavia, -StanLAND! and those wacky Nazis.
5- Yugoslavia has Portugal, for some reason.
6- Forces the Nazis to border 4 other major powers.
7- Forces Yugoslavia to border 3 other major powers.

That's assuming they even manage to take control of all those countries.