I have Med Cruise and have played it too back in college - the V1 canon from the module includes both info on Gibraltar and Spain
Spain first
"CONDITIONS IN SPAIN
Despite the urging of both sides, Spain, a member of NATO, maintained a policy of neutrality throughout the war. When the United States entered the war in 1996, the Spanish government closed American bases within its territory (the U.S. naval base at Rota was the most important of these), and denied passage rights to American military ships and aircraft.
With the nuclear strikes, however, the refineries and oil processing facilities of Spain, like those of other neutral countries, were attacked to deny them to the enemy. Taking advantage of the disorder which followed the nuclear attacks, Basque and Catalan separatists soon entered into open revolt against the government in Madrid, and a low-level civil war began.
Between these revolts and the civil unrest caused by the world-wide depression of 1997-2000, the Spanish government was placed under increasing strain, and it was unable to hold onto the areas in revolt. The area of the western Pyrenees is under Basque control; Catalonia (roughly the area from the eastern Pyrenees south to the latitude of Valencia) is effectively independent as well.
The Spanish government nominally controls the rest of the country, but this control is limited to sporadic antimarauder sweeps by the army or the Guardia Civil (a paramilitary national police force).
In 1999, a military coup overthrew the constitutional monarchy, but they were unable to reunite the country. Nominally, the junta of generals controls the whole country, but they exercise government control effectively only within the range of their rifles."
Given that Madrid was most likely NOT nuked (i.e. the govt area itself) but the refineries and oil processing centers were. Interesting enough the base at Rota does not appear to have been nuked.
The Basques and Catalonians have made their areas basically independent.
The V2 canon is different
"Iberian Peninsula: Although neutral, Spain and Portugal suffered the fate handed out to France because of their ports and oil handling facilities. The central governments are both a shambles, now represents mostly by roving bands of Guardia Civil and army units which lead a semi-marauder/extortionist existence.
Gibraltar and the area within 20 kilometers of it are in anarchy; the
rest of the peninsula is insular, terrorized, devastated, or independent."
Thus a lot depends on if you are writing a V1 or V2.2 guide
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