Éamon de Valera on a formal coalition agreement, something de Valera was unwilling to concede. However, while Fianna Fáil was six seats short of a majority, it was still by far the largest party in the Dáil, with 37 more TDs than the next largest party and rival, Fine Gael (the successor to Cumann na nGaedheal). Conventional wisdom held that de Valera would remain Taoiseach with the support of independent deputies. However, this was brought undone when the other parties realised that if they banded together, they would have one seat fewer than Fianna Fáil, and would be able to form a government
Éamon de Valera participation in the War on the Allied side, while others, seeing "England's difficulty as Ireland's Opportunity", were pro-German. Strong objections to conscription in the North were voiced by de Valera. In June 1940, to encourage the neutral Irish state to join with the Allies, Winston Churchill indicated to de Valera that the United Kingdom would push for Irish unity, but believing that Churchill could not deliver, de Valera declined the offer. The British did not inform the Government of Northern Ireland that they had made the offer to the Irish government, and De Valera's rejection was not publicised until 1970.