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Charles de Gaulle spends his first year in office consolidating his power. Outspoken opponents to his administration mysteriously disappear. Few, if any, suspect that de Gaulle is behind it. In October, he announces that he finds the Treaty of Nuremberg null and void, he will no longer abide by the military restrictions, and will pay no more reparations. Steel and manufacturing industries soon receive military contracts, and start hiring more jobs. The unemployment rate is cut in half by the end of the year.
Under the leadership of Oswald Mosley, the British military crush the Irish rebellion. Before their final surrender, all evidence of German and American involvement is destroyed. Mosley begins a naval rebuilding program, vowing to recover from the Royal Navy's losses from Jutland, to Newfoundland, all the way back to the Caribbean Sea.
In Paris, protests over the German occupation spring up. Attempts to disperse the crowd result in the protesters turning violent. German troops open fire, killing fifteen. The Paris Massacre ignites a Free France resistance inside the German held territory, supported by de Gaulle's government. A similar movement starts in occupied Spain, before long, the two unite to form the Free Europe Resistance.
Trying to match Britain, Germany launches the SMS Deutschland, a pocket battleship. Two more of the class are planned, as well as a class of full sized battleships, starting with the SMS Bismarck.
Free Europe Resistance fighters begin receiving weapons and support from the French Government. Bombings throughout the European Commonwealth become commonplace. Railroads are torn up, then when repair crews come to fix them, they're ambushed and mowed down. The German Army begins training special units for anti-insurgency tactics.
In the US, a proposition to admit the Canadian territories as American states falls short. Opposition to the move asked why they should get priority over Alaska and Hawaii. President Roosevelt signs the Gold Reserve Act, outlawing the private ownership of gold. Seeing the increasing militarism from the UK and France, he orders new military building programs.
In the Soviet Union, Joseph Stalins four year plan plunges the country deeper into the Depression. Frustrated, he looks to where the other nations are producing, the military, specifically the navy.
The French battleship Dunkerque is launched, with her sister ship, Strasburg, to follow it shortly. They're part of de Gaulle's rearmament program, more and more powerful are planned to be laid down later in the year, the Richelieu class.
In February, the remnants of France and Spain, in addition to Italy, form the South European Alliance, headquartered in Marseille. It is claimed that this union is meant for mutual protection, but in reality, Spain and Italy signed over their sovereignty to de Gaulle.
The militaries of the Alliance are merged into one entity, the combined ships alone match the numbers of America and Germany. And with the navy of its ally, the UK, gives them a 3-2 ship advantage over the Central Powers.
Speaking of Britain, Prime Minister Mosley orders the demilitarization of the occupied French coast, and it would extend twenty miles in. Not wanting another war Germany agrees to a DMZ five miles deep, Mosley agrees.
In Austria-Hungary, discord arises in the north, home to the Czech and Slovak ethnic group. The two form an underground government in Prague. With encouragement from Britain and the S.E.A., a resistance starts. Within months, similar movements start in occupied Romania, Serbia, and others. Most are put down or don't get enough steam, but the Czechoslovak remains.