After the election of 1936, the Agrarian Party and the Social Democrats had found a common understanding in many issues. The groups started to negotiate on a common government base. When Kyösti Kallio, who had served as Prime Minister, was elected President of the Republic after Social Democrats had also supported him in the second election round, A. K. Cajander of the Progressive Party was appointed as the new Prime Minister. The Cabinet consisted of five Agrarians, five Social Democrats and Rudolf Holsti of the Progressive Party as Foreign Minister. The newborn agrarian-socialist alliance continued almost uninterrupted for 50 years.

The long Parliament

The Parliament elected in had to face the difficult circumstances imposed by a new World War, and its term of office extended over almost six years up to 1945. During this extraordinary period, the position of Parliament could not remain as central as in the previous decades. The Cabinet mostly tried to keep the Foreign Affairs Committee and the leaders of the parliamentary factions updated on foreign policy issues.

In the autumn of 1939, the threat of war was manifested in disturbances to foreign trade: the major part of the increase in the budget proposal was due to increased defence expenses. After the Red Army invaded Finland, the Cabinet reported to Parliament in a closed session on 30 November 1939. Parliament unanimously supported the Cabinet. After the evening sessions, Parliament moved to Kauhajoki in Ostrobothnia according to a ready-made plan. In Kauhajoki, Parliament quickly found that it had displaced itself from current events. Parliament thus returned to the capital in February. The Winter War ended with the Peace of Moscow on 13 March 1940. This started a period called the interim peace.