In my opinion (whether or not you take it as humble) I believe this is a bad idea. Further, it is my opinion that Italy should not take any portion of the zones comprising the country of France. (France, S. France or Normandy.) This should go entirely to Germany.
But Italy needs the income! yes, yes, I do agree. However, Italy is more than welcome to take Greece, Yugoslavia and Bulgaria (even getting replacement infantry there) if they need the cash THAT BAD.
Meanwhile, with a free Industrial in the Med for Germany, you gain the preceious ability to directly reinforce the Italian fleet if you need it. (I’ve built a complex in Yugoslavia numerous times because I needed to Reinforce the Italians. Now I had to pay 12 IPC for the complex, PLUS the warship cost whereas with S. France, I coulda saved the 12 IPC.)
Just my humble opinion on this.