German mastery over Europe was now complete, with the defeat of the Soviet Union and the ousting of Joseph Stalin, the Heer and the Lufwaffe had been re-deployed en-masse to the Spanish front, Hitler would see the Americans kicked from Spain no matter the cost.
The Germans could muster some 80 divisions in the Pyrannese supported by some 20 Hungarian infantry and a further 7 Cavalry divisions, all of whom had proven themselves able fighters against the Soviets. In addition, the Italians, Turks, Romanians, Bulgarians, Spanish, French and English all had sizable armies in the area, and as such on a purely numertical standpoint the Axis outnumbered the Americans by 3:2. However the armies of many of the Axis minors, especialy Romania, were fitted with poor equipment and in many cases worse training, and as such they could be expected to do little more than hold the line while the German Panzers and Panzergrenadier units engaged the American armor and infantry in offensive combat.
A montage of the Spanish Campaign
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Spain was to become a deathtrap for the Americans. Despite fighting valiantly, the superior strength of the German tanks would prove decisive. With the U-Boats of the Kriegsmarine patrolling the Spanish coast, ensuring no sizable evacuation or reenforcment could be made, some 130 American divisions in Spain were reduced through combat and areal bombardment untill all that remained were pockets in Seville and Portugal. While sizable, these armies were surrounded and out of supply, and soon were forced to surrender.
All of Spain and Portugal were now back in Axis hands. The Spanish returned Amsterdam, the temporary site of the Spanish capital during the darker days of the US assult, to the Germans, and the massive German armies in Spain were pulled back into Germany to rest and be refitted. Before any major withdrawl could be made the Americans staged two disasterous amphibious assults, resulting only in the annhilation of a further 7 divisions. The American public could only mourn the terrible loss the nation had endured in Spain. While at first the Americans had made great progress, even threatening Vichy, the natural barrier of the Pyrannese mountains had contained the threat. In all, some 140 American divisions had been completly destroyed, their soldiers laying dead on Spanish and Portuguese soil or walking into a German POW camp. American losses therefore would not be counted in the thousands, or even the hundreds of thousands, but the millions. 1,400,000 Americans never left Spain.
In the aftermath, Potugal, which had been under a liberal American administration for over a year, was divided into Italian and German zones of occupation, as the people were loath to accept the return of the harsh dictatorship present before the American invasion. When resistance had been crushed, the Germans would allow the Portuguese to return.
(This is just me covering for some bug here, for Portugal, whenever either I or the AI recovers a province that had been taken from Portugal they keep it rather than giving it back, any idea whats going on here guys?)
Hitler now made plans for further strikes against the US. The military might of the United States had been serverly blunted in Spain, however the US did not lack manpower and its vast industrial base would see these losses recouped within a year. Thus the time to strike was now.
The Heer had been outfitted with 8 new Marine (II) divisions, equiped with the new Luchs (IV) light tanks and the newest artillery. It was decided that a forward base would need to be siezed before any invasion of America could be launched. Thus two Marine divisions were landed in Iceland, quickly overwhelming the one undermanned Motorised division stationed in Rekjevikk. The cost of the landings however would be high. The Kriegsmarine screening force, including three of the navies four carriers, was intercepted by a vastly superior US Carrier Force and completley annhialated before any attempt to flee could be made.
Hitler was furious, he was losing faith in the worth of carriers, as now six of the Kriegsmarines massive ships lay on the bottom, that said, a run of three new carriers (IV) was ordered.
The Americans could boast a massive 19 Carriers, while Germany now had only one, the UK two and Japan nine, the Americans still ruled the seas.
Japan was still having troubles defeating the Chinese, despite this some inroads had been made as Japanese forces returned from the Soviet front. The two German Fallschrimjager divisions in China succeeded in capturing the island of Hainan. In other news, Hitler and the rest of the German high command mused, it was hard to keep a bad dog down as Stalin returned to the USSR as its head once more after precious few months of the new government. (Seriously, after the Bitter Peace event Stalin was removed by a new more moderate government, I come back three months later and look whos back in the new Kremlin, weird)
The Soviets had began militarising the border with the Greater Reich. Despite the massive losses in territory, Soviet industry had come through greatly unscathed due to Stalins decision to move heavy industry east of the Urals (Russian IC remains at around 130/200), and there were those in Germany who wondered how long Stalin would wait before attempting to regain the losses he had suffered.
The state of affairs in Asia
Hungarian units were shipped to Iceland just as the new Fascist Republic of Iceland declaired its independence from the Reich, Hitler gave his blessings as huge numbers of troops and ships began to amass in Rekjevikk.
America would have to be hit hard sooner rather than later before the advantage won in Spain was lost.