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The Danubian Confederation was a Federal state that was Proposed By the Habsburgs and soon in a proposed WW2 peace treaty from Winston Churchill.
The Danubian Confederation proposed by the habsburgs was essentially an Austrian Empire with minor Italian Territories and a Tunisian Colony. The Confederacy would've been a powerful European State and would act as the United Kingdom of the Balkan states.
The Other name for the State was "the United States of Greater Austria" which would gain a democratic regime rather than the Austrian Autocracy they faced before. The State was wandering in the Minds of several European Peoples from the Habsburgs to World War 2 and Churchill made it clear he wanted a Buffer zone from Germany into the Balkans. [1]
It was proposed in Austria in WW1 to make a state that occupies the western Balkans although the Antons decided to Carve up Austria-Hungary and tear apart the Dual monarchy. The Danubian Confederacy would've been an even worse threat for Serbia even with land loss because the Uprisings they would've faced to Attack Serbia Again would've Decisively caused a second War.