Spain

The Kingdom of Spain is a constitutional monarchy in south-western Europe, occupying most of the Iberian peninsula and sharing land borders with Portugal, France and Andorra. The country is also seperated from Morocco only by a narrow body of water known as the Strait of Gibraltar.

In spite of being a monarchy and officially aligned with the Alliance of Free States, it is notable for its mixed economic system incorporating elements of market socialism, a high degree of decentralization and maintaining reasonably relaxed diplomatic and trade relations with states on both sides of the Cold War.

History
In 1931, the reigning monarch of Spain, Alfonso XIII, fled the country a year after the fall of the unpopular dictator Primo de Rivera, whose seizure of power he had supported. The subsequent Second Spanish Republic would itself fall just six years later, following a military coup against the left-wing government of Manuel Azana, initiating the Spanish Civil War, essentially a struggle between fascists and socialists, soon dovetailing into World War II. The military government of Jose Sanjurjo became embroiled in the global conflict on the side of the Axis Powers, while neighbouring Portugal, due to its alliance with the United Kingdom, entered on the side of the Allied Powers, as the Nationalist government found itself forced to fight both the left-wing Republican faction and British-aligned Portugal. [...] Following the fall of the Falangist regime, and with the Spanish left depleted from years of fighting, the UK installed Prince Xavier, the socially progressive Carlist claimant to the throne, as King of a new Spanish state with a high degree of constitutional decentralism in order to appease the country's myriad political factions.