A window of opportunity 1905

1932
SAAB present a new biplane fighter a development of the Jaktfalk with a more powerful radial engine and armed with four machineguns. This updated Jaktfalk is also en export success in the Nordic countries as well as the Baltics.

Bofors builds a prototype 37mm Anti-Tank gun which eventually as did the Madsen 20mm Autocannon arms the Nordic countries as the main Anti-Tank weapon but is also exported to the Netherlands and licence built in Poland.(OTL)

Germany presidential elections 13. March its President v. Hindenburg vs. Socialdemocrat Wels, Communist Thälmann, Stahlhelm leader Deusterberg and Inflationvictims Organization Winter. The announcement of candidates made for a shock in conservative circles who saw v. Hidenburg as having given in to the political left by not during his term abolishing the Weimar Republic and Hugenberg leader of the German National Peoples Party declared himself a candidate.
The first round of elections see v. Hindenburg get 13,5 mill. votes, Socialdemocrat Wels 9,1 mill., Communist Thälmann 4,9 mill., Deusterberg 3,5 mill., Winter 0,2 mill. and Hugenberg 6 mill. votes.

Before the runout second round General v. Schleicher former General of the Reichswehr turned politician and advisor of v. Hindenburg addressed Wels on his agenda as possible President mainly regarding the Armed Forces.
Wels said “General the Socialdemocratic Party didn't take the Panzerschiff issue to a vote and the Party is well aware that any state including the German is in need of armed forces. The Socialdemocratic Party is not blind to that the World is a dangerous place to be in without the right means and that those means will have to be updated from time to time – in time!”
V. Schleicher “You should know You have been a man of arms yourself – thank you for your answer.”

Communist Thälmann withdrew before the second round and informed his Party that Wels was the candidate of the left.
Deusterberg and Winter left the candidacy but Hugenberg decided to stay in to combat the left.
With two rightwing candidates those votes were unfortunately split – v. Hindenburg getting 13 mill. votes, Hugenberg 9 mill. and Wels would gain the majority 14 mill. and win the Presidency.
The first act of the new President was to ask Socialdemocratic chairman Arthur Crispien to form as broad a coalition government as possible.
One of the first to congratulate the new President was Danish Primeminister Stauning almost in company with his Nordic collegues.

Germany have been experimenting with new tank designs on its Soviet proving ground for some years and this year a new Kleintractor (Smalltractor) design is undertaken to launch a series of light, medium and heavy tanks. The design process is to go on for some years yet and training in the Sovietunion continue with the earlier models and Soviet types when possible.
The third Panzerschiff is laid down 1. October. Crispien had argued against it but the President overruled him. (OTL)

In London and Paris the result of the German Presidential elections were received with a sigh of relief. Now with the ultra-nationalist forces of Germany being curbed with the slow demise of the Nazi Party and the bad vote for both Stahlhelm leader Deusterberg and German National Peoples Party leader Hugenberg Germany might be on the way to become a normal democratic state.
In light of this the building programme of the new German heavy cruisers seemed of little importance to Britain though the French had to accept it as it didn't violate the Versailles Treaty and the alternative to allot the Germans tonnage under the London Naval Treaty which would open for building of German capital ships (battleships).

By this time Hungary was firmly back in the Italian camp as Yugoslavia decided not to prolong the 1926 trade agreement.
The Ustasha movement tries to make an uprising in Lika/Velebit by launching an attack on a Police Station in the area using Italian arms smuggled into the area. Having fired their weapons the Ustasha men withdrew. Later the Yugoslavian communist leader Gorki´c would critizise the Dalmatian communists for not joining the uprising. (OTL)

The debt nations defaulted in 1932-34 only Finland continued paying.
I don't see any change to that ITTL.
Germany have to decide if it wants to pay reparations and face french public rage or negotiate a settlement with France. Problem is of course the rightwing political stance of the Reichswehr and President Wels will have to throw them a bone.

1933
General Kurt v. Schleicher after having left his post at the Ministry of Defence not having been able to talk former SA leader Ernst Röhm to return from his Army post in Bolivia and not being able to clandestinely enlarge the Army by enlistment of political right wing militias as well as Reichwehr Generals now communicating with the new Government which v. Schleicher no longer being party to because of his Ministry post having been abolished.
The Chief of the General Staff Kurt v. Hammerstein-Equord who had resented v. Schleichers political machinations and wanted the Army to be a non-political institution transferred v. Schleicher to a divisional command in Silesia; an area v. Schleichers had resisted getting any economic aid during his years in the Ministry of Defence and hence a definite end of his career.

V. Hammerstein-Equord had presented a plan of building an Army of 42 Divisions to President Wels who well aquainted with Hammerstein-Equords political view – the General had abstained from the Kapp Putsch in 1920 - but Wels had reminded the General that Government had foiled the coup by a General Strike and that an informal Hamburg militia had defeated the “Freikorps Iron Troop” during the putsch.
V. Hammerstein-Equord inform President Wels and Minister of Defence Gustav Noske that the Army would stay an unpolitical institution though said that he was knowing of President Wels answer to Kurt v. Schleicher following the Presidential elections the year before which the President assure as being correct.

1. April the second Deutschland heavy cruiser enters service nemed Admiral Scheer.
The launch of the ship makes for Government to quell voices of protest in the Nordic countries over arms spending.
However the demise of the Nazi Party in Germany is also reflected in the Nordic countries as political right-wing movements such as Peasants Organizations is much more Monarchistic if with a stint of Fascism than Nazi; however Italy is a long way away with few ever having been so far abroad.

Though travel abroad is possible its a passtime of the few even if workers have had right of holiday since 1931 travelling is still expensive.
Usually Danish travellers would be going as a part of work and as the major trading nations were Germany, Britain and Sweden the majority would go to these countries. Vienna in Austria was also a favourite due to its history and links forged with Viennesechildren who were shipped on vacation in Denmark post WWI to get fed and cared for. The really wealthy would of course go to Paris and the French Riviera with the select few visiting the Eternal City of Rome and Amalfi Coast.
The majority would get information from newspapers and periodicals on whats happening outside the borders and hence the new political situation of Germany's made for change.

The German situation due to the limitations of the Versailles Treaty have also affected the Nordic Countries as German firms notably aircraft producers have been setting up shop in both Denmark and Sweden to circumvent the Treaty. As a spinoff both countries have seen some employment but also some acquisition of technical know-how.

In Denmark Socialdemocratic Government and Liberal Party Venstre is able to negotiate a path out of the economic crises which is lauded as a great political result.
During the economic crisis Denmark have been reaping large harvests but the agricultural sector complain that it's needing funds to pay for mainly fertilizer. However some peasants realize that even with less fertilizer they still get their normal harvest though nobody seems to realize this – fertilizer being god to agricultural produce.
The production of pork and beef is also keeping up problem generally being that its difficult to sell as all is hit by economic recession.
Premier Stauning wants to use the surplus agricultural produce to strengthen Nordic ties; Finland is indebted by lack of foodstuffs but Norway and Sweden is doing well selling timbers, fish and iron ore at bonanza prices. Stauning calls for an inter-Nordic conference on trade and produce to ease the strain mainly of course on his own agricultural sector but also to try make Norway and Sweden share the burden.
The conference is partly successful as the Swedes realize that it need a strong Finland as a buffer in the east but also that cheap Danish agricultural produce will lower the need for subsidizing low-payoff farms. Denmark is still troubled by the too high industrial output but a lowering of steelprice is helping. Finland is the greatest beneficiary of the scheme and the image of Denmark as the saviour of the nation is getting stronger.

Britain no longer see the need for cooperation with Italy to encircle Weimar Germany and this new outlook is shared with the French Government which isn't as certain as Britain but the French position is weakened by the new Army Doctrine of fortified defence expressed in the building of the Maginot Line and a long war to wear down a German attack.
The British remind the French of their difficulties with the Italians during the 1930 Naval Treaty negotiations which makes the French even more grumpy.

In Italy camps are setup for the Ustasha to use for raids into Yugoslavia. Nothing much is attained by the organization despite the Italian support.