In the long term, a disaster for Spain. Spain's economy will be crunched by shortages of food and oil. And there is a possibility IMO that the US/UK start the Western Front in Spain, in which case Spain gets fought over like Italy, with lots of things getting broken.
But in the short term, a lot of trouble for the Allies. With Spain in the war, Gibraltar falls or is completely neutralized. That means Italian battleships can sortie into the Atlantic. U-boats and surface raiders can operate from Spain, beyond RAF patrol reach. Allied shipping to Africa, Asia, and Australia would have to make a detour far to the west.
If the Axis can prevent Britain from seizing control of the Canary Islands and Spanish Sahara at the start of Spain's involvement, they can turn those territories into a powerful air/naval base area that IMO Britain by itself can't take. (Remember, from Dunkirk until Lend-Lease got started, Britain was making war on a shoestring.) Any British invading force would be operating very far from any base area, covered only by carrier aircraft. (Sea Gladiators against Me-109s?)
The British blockade of Europe would be ruptured. While Germany can't afford to pay for a lot of imports, it will gain at least some access to a lot of things that OTL it had none of.
But in the short term, a lot of trouble for the Allies. With Spain in the war, Gibraltar falls or is completely neutralized. That means Italian battleships can sortie into the Atlantic. U-boats and surface raiders can operate from Spain, beyond RAF patrol reach. Allied shipping to Africa, Asia, and Australia would have to make a detour far to the west.
If the Axis can prevent Britain from seizing control of the Canary Islands and Spanish Sahara at the start of Spain's involvement, they can turn those territories into a powerful air/naval base area that IMO Britain by itself can't take. (Remember, from Dunkirk until Lend-Lease got started, Britain was making war on a shoestring.) Any British invading force would be operating very far from any base area, covered only by carrier aircraft. (Sea Gladiators against Me-109s?)
The British blockade of Europe would be ruptured. While Germany can't afford to pay for a lot of imports, it will gain at least some access to a lot of things that OTL it had none of.
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