Portuguese Republic

The Portuguese Republic or also known as the Estado Novo (New State) is a nation in Western Europe in the Iberian Peninsula bordering only the Spanish State.

History
Salazar cemented his control over Portugal in 1933 with the creation of the Estado Novo being nationalist, conservative, and corporatist in nature. The nation of Portugal remained largely neutral during the Second World War. It did however lease the islands of the Azores and traded with the Allied Powers. This assisted American fighters and bombers fight alongside the Commonwealth in Europe and kept the British Empire from completely falling apart. Portugal has also become a hotbed for the spying world with eyes from all parties that were involved in the Second World War despite the war having ended are using Portugal as a cover against enemy counterespionage. Portugal continues to be a hub for tactical intelligence gathering.

Politics
Portugal is under a corporatist dictatorship headed by Antonio de Oliveira Salazar and the National Union. Some liberal reforms have occurred since the 1940s and Salazar has allowed a tuning-down of censorship activities and the return of elections. However, Salazar is using this just as a smokescreen for his enemies and a grand gesture to the people of Portugal to create more support for its charismatic dictator.

Opposition to Salazar and the dominant National Union does exist, but it is highly fractured and manipulated by the National Union of the Estado Novo, keeping the threat as low as possible. The only actual opposition to Salazar and the Estado Novo is to be found outside of Portugal or hidden in the cracks of the New State, such as the military.

There is also a large spy network for nations that were apart of the Axis and Allied Powers respectively with Portugal being a hub for intelligence gathering.

Reports from its overseas colonies are constantly flooding the floors of the Portuguese parliament. Portuguese colonists seemingly have good relations with their black counterparts, the military and bureaucracy though are still fond of the old colonial policy and mentality regarding the native population. Paid serfdom still plagues the colonies of Angola and Mozambique, while East Timor feels the increasing pressure of its independence movements.

As for domestic relations in Iberia, the Iberian Pact, also known as the Portuguese-Spanish Treaty of Friendship and Non-Aggression, was signed during the final stage of the Spanish Civil War in 1939 by the nationalist government of Francisco Franco and Salazar's Portugal. An additional protocol was signed in 1940 after the fall of France, ensuring Iberian neutrality and safety. The treaty's legitimacy has started to rot, Spain and Portugal still promise each other military support in any European defense conflict involving the other nation as to keep Iberia out of the German, American or Italian spheres of influence. However, the Cold War has started to divide Iberia as the Spanish State continues to drift to the Axis sphere of influence while Portugal stays loyal to the Allied cause. The division currently occurring in Iberia must be addressed if the peninsula wants to continue remaining stable.

Economy
Portugal has experienced economic revitalization under Salazar's regime. Even if Portugal is one of the least wealthy nations in Europe, Salazar's nationalist economics shielded the young Portuguese industry from ruthless foreign competition, allowing it to slowly grow overtime. Economic progress has gone hand in hand with reforming the education system, as a large portion of the population still is illiterate

Military
Perhaps the greatest threat to the current regime is hidden in the cracks of the military.