Actually, i think Spain would be in much the same situation as i was when Franco won. Too damaged by war, in too much or an economic collapse to support a another war. I think Germany wouldn't invade, not because they dont want too, but, its too far away to stay a resonable target. Think about Supply lines and the like. Why do you think they installed a puppet government in south France?
Italy on the other hand, is an entirly different Kettle of fish. Mussolini could hardly keep his desire to have spain, or at least just the coast and the balerics, hidden. The prospect of Taking Gibralta is salivating as well for him. So what about this happend. (I might wright a timeline later) Instead of devoting all off his efforts to Greece and Africa (I still say he would take Albania, though), he turns towards Sapin and launches and invasion of the coastal regions. Therefore spain still becomes a front in the second world war, but forces on both sides arnt spread to thin.
Italy on the other hand, is an entirly different Kettle of fish. Mussolini could hardly keep his desire to have spain, or at least just the coast and the balerics, hidden. The prospect of Taking Gibralta is salivating as well for him. So what about this happend. (I might wright a timeline later) Instead of devoting all off his efforts to Greece and Africa (I still say he would take Albania, though), he turns towards Sapin and launches and invasion of the coastal regions. Therefore spain still becomes a front in the second world war, but forces on both sides arnt spread to thin.