After the Fall of France, Daladier was tried for treason by the Vichy government during the Riom Trial and imprisoned first in Fort du Portalet, then in Buchenwald concentration camp, and finally in Itter Castle.
For most of the interwar period, he was the chief figure of the party's left wing, supporters of a governmental coalition with the socialist Section française de l'Internationale ouvrière (SFIO).
In January 1934, he was considered the most likely candidate of the centre-left to form a government of sufficient honesty to calm public opinion after the revelations of the Stavisky Affair, a major corruption scandal.
After a year of being withdrawn from frontline politics, Daladier returned to public prominence in October 1934 and took a populist line against the banking oligarchy that he believed had taken control of French democracy: the Two Hundred Families.
[6] During an "emotional" interview with Blum, Daladier persuaded him to accept the 14 billion franc plan as he issued a stark warning that the Reich was winning the arms race at present.
[13] At a meeting of Comité Permeant de la Défense National in November 1937, Daladier stated: "The hypothesis of conflict with the Mediterranean as the center of preponderant action, raises different problems for our foreign and military policy...Given the two-bloc composition [in the Atlantic and Asia] of the Franco-British empire, an attack in the Mediterranean, the stem between these two blocs would allow Germany and Italy to obtain the most decisive results".
Daladier's last government was in power at the time of the negotiations preceding the Munich Agreement during which France pressured Czechoslovakia to hand the Sudetenland to Nazi Germany.
In April–May 1938, British Prime Minister Neville Chamberlain strongly but unsuccessfully pressed Daladier to renounce the French-Czechoslovak alliance, which led to Britain becoming involved in the crisis.
The British thought that allowing Germany to defeat France would unacceptably alter the balance of power, and so Britain would have no choice but to intervene if a French-German war broke out.
As British Foreign Secretary Lord Halifax stated at a Cabinet meeting in March 1938, "Whether we liked or not, we had to admit the plain fact that we could not afford to see France overrun.
"[16] At the Anglo-French summit in London on 28–29 April 1938, Chamberlain pressured Daladier to renounce the alliance with Czechoslovakia, only to be firmly informed that France would stand by its obligations, which forced the British to be involved very reluctantly in the Sudetenland Crisis.
In fact, he told the British in a late April 1938 meeting that Hitler's real aim was to eventually secure "a domination of the Continent in comparison with which the ambitions of Napoleon were feeble".
[9] Daladier had pushed very strongly during the London summit for Anglo-French naval staff talks for a possible war against Italy as he argued that both Britain and France needed command of the Mediterranean.
[30] The next day, Daladier told his close friend, US Ambassador William Christian Bullitt Jr., that he would much prefer war to the "humiliation" of the Bad Godesberg terms.
[31] However, on 29 September 1938, Chamberlain announced to the British House of Commons that he just received a phone call from Benito Mussolini, who said that Hitler had reconsidered his views and was now willing to discuss a compromise solution to the crisis in Munich.
Daladier was happy to have avoided war but felt that the agreement he had signed on 30 September in Munich was a shameful treaty that had betrayed Czechoslovakia, France's most loyal ally in Eastern Europe.
[36] In February 1939, the French offered to cede their possessions in the Caribbean and the Pacific, together with a lump sum payment of 10 billion francs, in exchange for the unlimited right to buy American aircraft on credit.
[39] The one-day general strike of 30 November 1938, which pitted the government against unions supported by the Communist Party, proved to be the first test of Daladier's new policy of "firmness".
[40] At the time, Daladier justified his policy of "firmness" under the grounds that if France was to face the German challenge, French production would have to be increased and said that was the price of freedom.
"[43] Mussolini had expected that his "Sudeten methods" would lead to France ceding Tunisia, Corsica, Nice and Savoy to Italy, but Daladier rejected the Italian demands completely.
[43] In his annual Christmas radio broadcast to the French people, Daladier gave what the British historian D.C. Watt called "an extremely tough speech" rejecting all of the Italian demands and warned that France would go to war to defend its territory.
[44] In late 1938 to early 1939, the British embassy was bombarded with rumours from reliable sources within the French government that France would seek an "understanding" with Germany that would resolve all problems in their relations.
French intelligence fed misinformation to MI6 that Germany was about to invade the Netherlands with the aim of using Dutch air fields to launch a bombing campaign to raze British cities to the ground.
[46] The rise in French industrial output and the greater financial stability in 1939 as a result of Reynaud's reforms led Daladier to view the possibility of war with the Reich more favourably than had been the case in 1938.
[50] Daladier felt that on economic and military grounds, it was better to have the Soviet Union serve as the "eastern pivot" of the "peace front" than for Poland to do so, as the British preferred.
[52] A public opinion poll in June 1939 showed that 76% of the French believed that France should immediately declare war if Germany tried to seize the Free City of Danzig.
[56] After the Molotov–Ribbentrop Pact was signed, Daladier responded to the public outcry by outlawing the French Communist Party on the basis that it had refused to condemn Joseph Stalin's actions.
During the Danzig Crisis, Daladier was greatly influenced by the advice that he received from Robert Coulondre, the French ambassador in Berlin, that Hitler would back down if France made a firm enough stand toward Poland.
[58] On 29 January 1940, in a radio address delivered to the people of France, The Nazi's Aim is Slavery, Daladier explicitly stated his opinion of the Germans: "For us, there is more to do than merely win the war.
After the war ended, Daladier was re-elected to the Chamber of Deputies in 1946 and acted as a patron to the Radical-Socialist Party's young reforming leader, Pierre Mendès-France.