7-April-1944
Iberian Peninsula
Madrid Falls! The Axis (mostly Italians) retain garrisons in various cities to slow the Allies advance, but the bulk of Spain is now in Allied hands. Portugal (at least Lisbon) remains firmly Axis, and the Allies seem to have no interest in capturing it:
Middle East
The Allies have reopened their communications with Basra, but that has given the Axis a little time to counter-attack in Egypt. The idea is to keep the Allies out of the Mediterranean for as long as possible, to forestall the loss of Italy.
Northern Europe
While obviously grim, the Axis are holding the Russians around Berlin for now. The combination of bad weather, rivers, forts, SS units, defensive generals, technology and (marginal) Axis air superiority are making things hard there. The Romanian oil fields are still in Axis hands, although at this point, the Axis have enough oil for the rest of the war in any scenario. The Russians are menacing Italy through the Alps. I should have move a corps or two into the mountain region before the Russians got there, but I missed that trick. The Italians are no match for the Russian infantry, and Italy could be out of the war soon.
Atlantic
One other note -- the Kriegsmarine has pretty much swept the Atlantic of Allied forces, and so we feel pretty safe from assault on the coast of France or the UK for now. Now that Spain is occupied, there may be some openings, however. Oddly, there hardly EVER seem to be any convoys to Russia. On one hand, that means the Russians aren't getting any materiel, but it does seem strange. Morris, what is up with this? Did you get any convoys in the 2nd half of the war?!
