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I was playing as the axis and had invaded the soviet union. Because it was one of my first games, I had reduced the Soviet Union to 25% PP in the difficulty screen, so I had no trouble overwhelming them. Eventually, because I was successful and just so damn cool, Spain decides to join the Axis.

Not only do I not need them, but their units suck and they just provide a lot of beaches for the Allies to invade. Is there a way you can turn away allies... something like a diplomatic not saying "thanks, but no thanks"?

No there is no such option, but I have told Spanish leaders to be less eager when joining the war.

Unfortunatelly you have to wait until the patch.