I'm getting kinda hungry about going to fight Fascism in Europe, but before that let's have a look at consequences of Republican victory in Spanish Civil War. None of this stuff has any connection to game events but represent merely educated guesses what would or could have happened in European politics in case of Republican victory, just for my own amusement.
Seriousness not guaranteed.
Neville Chamberlain and British Government had not helped Republican Spain during the Civil War, and were rather worried of the consequences to European politics as 'Anarchists and Socialist rabble' triumphed in Spain. Most democracies of West had seen Fascism as preferable alternative to Socialism, and felt more threatened by revolutionary USSR than by orderly Germany. In addition Britain felt certain sympathy for Germany that had been maltreated by French after the WW1, and were rather willing to look other way, at least before darker aspects of National Socialism became obvious.
However, as it became obvious that Franco was utterly defeated, Britain recognized Second Republic as the only legal government of Spain and took necessary steps to normalize relations between the two countries. During 1937 feeling of cautious optimism prevailed in London as Second Republic showed no interest in becoming Stalinist satellite, and relations gradually improved.
German Chancellor Adolf Hitler exploded with rage as he heard about surrender of Légion Cóndor and triumph of socialism. Mad with rage, he refused to recognize the government of Spain, much against advices of his ministers. Naturally the defeat of German volunteers in Spain was only a minor nuisance to Nazi state, and propaganda quickly managed to mount even greater fear and fervor against 'Bolshevik menace', actually benefiting the state. Yet Hitler could never forget such an personal insult. It was rumored that three chandeliers in
Reichstag were lost as Hitler vented his vocal fury.
Relations between Germany and Spain remained chilly.
Légion Cóndor was forced to surrender in 4th of September 1936, to great humiliation and fury of Hitler, but to great relied to men who fought desperately in Spain. Thousands of German volunteers became prisoners of Republican Spain, their weapons and vehicles spoils of war, but all lived as internees. Germany refused to recognize Second Republic as legal government of Spain, and consequently Spain refused to return German prisoners. The legal situation of these men remained rather unclear as matter dragged on, but they happily missed the slaughter of Second World War.
However, their reports and many veterans returned into Germany, and Spanish Civil War still functioned as a important lesson to
wehrmacht about peculiarities of modern war.
Italian dictator Benito Mussolini tried to repeat the propaganda-feat of Hitler by calling for further "sacrifices in crusade against Bolshevism that threatens Italy", yet results remained unconvincing. Italian people were never as devoted to the State as Germans were, and Italian propaganda machine was not as powerful as it's German counterpart. As war in Ethiopia dragged on in late 1936 the competency of Mussolini's regime was often questioned among common people, and sometimes within his own party. Italy refused to arrest Franco who had fled there, and relationships between two Mediterranean nations remained sore.
Italian Armed Forces were defeated, and Spanish Civil War was the end of the road for many. The defeat of both Italian and German troops in Spain, despite all the aircraft, tanks and supplies invested, gave a blow to Mussolinis credibility that never properly healed. It also showed the underlying fragility of Italian armed forces, a fact many Italian commanders were painfully familiar with, but Mussolini refused to see. Under all the rhetorics and marches Italy was woefully unprepared for war, and would be hopelessly outclassed by German militaray, perhaps becoming a German satellite. Charasteristically Mussolini ignored bothersome reality as he dreamed of glory and conquest.
Mussolini tried to show his independence from German Fascism by recognizing Spanish government, and consequently Spain returned most Italian prisoners of war, giving some boost to his popularity.
Italo-Abyssinian war dragged on.
General Secretary Joseph Stalin was not much bothered by results of Spanish Civil War. Though Spain embraces western democracy and capitalism, and failed to become model satellite of USSR, Stalin had more important things to worry of than the fate of some 'minor country of little value.' It was reported that Stalin had said 'I never thought they could win in any case! Do wonders never cease?' In the end, Soviet Union won at least a propaganda victory as Fascism was defeated, and during next years Stalin upheld good relations with Spain, trying to present best possible face to the international community.
Following the Republican victory in Civil War left-wing intellectualism gained both momentum and credibility, and Soviet Union was able to hide Great Purges rather well. Staling was, however, much too cynical to believe that any major victory against Fascism had been achieved.
Soviet Union and Spain stayed in good terms, and became important trading partners.
George Orwell and many other international volunteers returned to their home countries, some sooner while some rather later. Personally Orwell seemed very pleased with Republican victory, though he often complained that he could not write a proper book about it, since 'it had a happy ending.'
Many volunteers who had fought in Spanish Civil War found themselves victims of marginalization, even harassment, in their home countries, especially those who came from Germany and Italy. In act of generosity Spanish Government offered asylum and citizenship to those who had fought on their side, and thousand returned to Spain to stay.
Dictator Salazar of Portugal was dismayed by Republican victory despite his best efforts, but his position remained unchanged. Revolution did not spread into Portugal, and there was little Spain could do about it's uncomfortable neighbor. Though it was widely known that Portugal had assister Nationalists to the end and offered shelter to many of them, Spain could not use force without committing political and diplomatic suicide. Furthermore, Spanish people were tired of war. Salazar was more motivated by practical matters than by ideology, and he quickly reopened diplomatic relations with Spain, despite angry protests from Germany. Gradually Spain adjusted into uneasy but necessary co-existence with Portugal, though relations were never cordial.
General Franco was, of course, defeated and fled to Italy with many fellow Nationalists. Republican Spain demanded his return from Italy in vain, and France spent many happy years in vicinity of Florence, shaking his head about clumsy politics of Mussolini. In September 1939 he fled into South America as a wealthy landowner, and was never seen in Spain again.
After making such a joke about Spanish Civil War I'm having something of a bad consciousness, so let's have historical facts.
Spanish Civil War was, like all civil wars, bloody, brutal and bitter. My version of it was over in few months, but the real deal lasted from July 1936 to April 1938, ending in Nationalist victory. It is estimated that 500000 people died in the war.
Since the name and purpose of this AAR were about SCW, I officially declare this story ended.
HOWEVER...
Since it seems that Fascism was not completely crushed in Spain after all, I'll have to make a new AAR about further misadventures of Republican Spain following this historical but (honestly) rather minor victory.