the fuse is lit
I liked your ideas. Here is my humble contiuation. However, I have no idea how the rest of the commonwealth would react to a more nationalistic and agressive british monarchy (I picture the british monarch somewhere along the lines of Richard III in the 90's AH movie adaptation of the play).
November 1939 - The fuse is lit
Finnish government officials, within the German sphere of influence, frightened of Stalins expansionistic policies, ally with the British and Germany, in the nick of time. Only days after the deals are signed, the finnish winter war begins and ends in total soviet victory.
Britain, the USSR, Germany and France begin moblilizing troops and the world holds its breath. The Americans, still under the impression that Europe does'nt even want them around (like the last time) goes even more isolationistic than in OTL.
The French seizes to send volunteers and materiel and launches an invasion of Spain.
1940 - Pawns of the european chessboard
Stalin's officials see the strategic importance of controlling the Baltic and the northern sea, and contiues to push west, into Norway and Sweden. Germany in turn, invade and annex Denmark (official government propaganda paints the picture of Denmark as yet another rouge german state that avoided the unification in the 1870's). The British take control of Iceland and Greenland. By May '40 the stage is set for fighting in northern Europe...
France, protected by the canal and a maginot-like line in the east invade Spain and manage to capture Madrid, which falls on April 25th, 1940. Pockets of nationalists, royalists and partisans remain, however, mainly in the south where they are supplied by the british in Gibraltar. By fall the Socialist Republic of Spain is a part of the commintern, but the government is weak and the domestic turmoil is enormous.
What next? What does Germany-Britain do, exept for the annexation of Denmark? What will happen to eastern Europe and the balkans? A map anyone? Japan? Also, if anything of the above seems to implausible, please notify me. Also, i was wondering if the Soviet intelligence could have any luck trying to fuel the Irish proletariat (which, if I'm not mistaken, was quite alot of people at this time) and their hatred against the british, with the goal being to create a communist state on the British Isles.