I agree that most armies have been reduced by the Twilight War - Spain however didnt see the same level of conflict as the others - but it also depends on your timeline - the much larger army of V1 would have a bigger presence than the smaller army of V2.2
Also Spain appears to be in worse shape in V2.2 than in V1 - i.e. the Spain of Med Cruise appears to be in better shape than the Spain of V2.2
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