I don't have a say in the matter of annexing or not annexing Denmark and Norway, but OTL European Union also shares currency, but consists of allied independent countries.
This is quite true, however in this instance we are discussing two countries whose political authority is weak and growing weaker, and now whose patron (who accounts for >90% of all their imports and exports) has pressured a measure to unify currency. In other words: London commands the entire economic and thus foreign policy of Denmark and Norway in a way that is subtle to absolutely no one. Honestly we assumed they wanted to be polite, step down, and get out of the way of the English. After all, Britain's intentions in the region have been very clear from the start. And a full-blown merger is in-character.
Here's the casualties, by the by:
### Conflict resolution record
ITA lost 4 Reserve Divisions.
ITA total casualties: 46959.
CRR lost 8 Reserve Divisions.
CRR lost 1 Autocar Divisions.
CRR total casualties: 82765.
Ground gained (km): -71.28913868904978 (ITA)
ITA lost 4 Reserve Divisions.
ITA total casualties: 47543.
GFA lost 3 Reserve Divisions.
GFA total casualties: 30898.
Ground gained (km): -182.24706810542904 (ITA)
ARG lost 2 Reserve Divisions.
ARG total casualties: 21218.
BOL lost 7 Reserve Divisions.
BOL lost 2 Lt-Armor Divisions.
BOL lost 2 Md-Armor Divisions.
BOL lost 2 Biplane Squadrons.
BOL lost 1 Triplane Bomber Squadrons.
BOL lost 8 Rifle Infantry.
BOL lost 8 Trencher Infantry.
BOL lost 8 Assault Infantry.
BOL total casualties: 293813.
Ground gained (km): 25.457101725225638 (ARG)
Total casualties in Russia: CLASSIFIED (est. >500,000?)