during World War II, was beneficial for Spain. During the Spanish Civil War, the right-wing party, Franco’s side, had been aided by the Nazi Germany and Fascist Italy.
So when World War II started Spain directly became part of the axis alliance, but Franco’s strategy pursued a long-term political agenda rather than immediate battlefield objectives. So when Mussolini and Hitler started to negotiate Spain’s entrance in the War, Franco backed out since. Hitler kept on trying to make Spain part of the war but Franco told him that Spain had to concentrate on reconstruction and avoid foreign ambitions for the time being since the nation was too weak to go to the battlefield, and that it would not be ready to face any further war for five years, a remarkably optimistic
assessment. Since Franco had received support from the Axis power during the Civil War, Franco decided to return the favour by being allied to the Axis. Franco made an offer to Hitler that exchanged Germany’s military and economic assistance, since the country was weak and needed to recover, for Spain’s presence in the war, but Hitler denied it since it was to much to ask. So since Hitler didn't accept the offer, Franco decided not to be allied to the Axis anymore and become neutral. “When one talks with the most reasonable people about the advantages of neutrality, they always mutter: “Yes, in fact we cannot make war, we are ill prepared”. This means they do not judge the war to be infamous, but judge themselves in a bad position to take part.” This quote from a Spanish general perfectly describes the situation Spain was in and why being neutral was the best decision they could have made because even though there was an extremely bad situation going on, there was nothing they could do since they had already been on a War for the past 3 months and they wear too weak to contribute. By being neutral Spain could rebuild all their economic, political and social aspects, become more powerful and achieve all the goals Franco had for the nation. Franco played smartly by not being an ally to the Axis since anything that would happen to it would have been influential for Spain.