Would an Austrian Adriatic coast give Germany a stronger Mediterranean position?
Short answerA coastal foothold could provide facilities after annexation, but Italian opposition would complicate Anschluss and the naval effect would depend on the available infrastructure.
NotesAustria retaining part of the Adriatic coast would have angered Italy. Mussolini's reaction was already a danger for Hitler's annexation plans, so an added coastal dispute would make Anschluss harder. Any German Mediterranean force would depend on the facilities Austria retained and the ships Germany could send there. The resulting fleet would not necessarily change the wider balance. Germany historically sent U-boats into the Mediterranean without an Austrian coastal foothold.