The 1930s saw the party in conflict over how to relate to the rising threat of National Socialism and Fascism. Its loosely affiliated youth organisation, the National Youth League of Sweden () was openly pro-Nazi and set up uniformed "fighting groups" to combat political enemies on the streets. The mother party did not like this development, with Lindman clearly stating that pro-Nazi views were not to be accepted in the party, and in 1933 the National Youth League was separated from the party. While the party set up a new youth league, which came to be called Moderate Youth League or "The Young Swedes" (currently the largest youth league in Sweden in terms of membership), the core of the old one (in spite of some districts, such as Young Swedes-Gothenburg joining the new one) set up its own party—the National League of Sweden—which fought elections as an openly pro-Nazi party and temporarily gained parliamentary representation in shape of three rightist MPs.