In April 1941, Yugoslavia was occupied by Nazi Germany and Italy, the latter annexing or occupying the Croatian Littoral, although the armistice between Italy and Allied armed forces of World War II and the 1947 Treaty of Peace with Italy reversed wartime Italian territorial gains, awarding the entire region and adjacent territory to Yugoslavia and the Federal State of Croatia. After the fall of communism, Yugoslavia broke apart as Slovenia and Croatia declared independence in 1991. Although the region suffered an economic decline during the Croatian War of Independence, there was no fighting in the region.