Eddie the Eighth was one of the stupidest people of his times. And, while he may not have been a fascist, he was definitely pro-Nazi.
The Nazis had regard for the UK in general, and the monarchy in particular. They might have signed an armistice with the UK, on their terms, that would have restored the Dunce-King to his abandoned throne. After the fall of France, and the trap at Dunkirk, the Cabinet was considering a deal with the Nazis in which they thought they'd be left alone if they gave up a few of their Mediterranian and African properties to the Germans. Chamberlain and Halifax, who had more prestige than new PM Churchill, were leaning in that direction. But a fortuitous combination of events quashed it. Most of the Allied troops trapped at Dunkirk escaped to England, thanks to a heroic armada of military and civilian evacuation vessels, and Goering's failure to send enough aircraft to finish them off on the beach. The US sent feelers to Italy to see if Mussolini might convince Hitler to accept a deal from the Brits. But Count Ciano, the foreign minister, said Mussolini would never intercede. Then Churchill made an epic speech to Parliament, convincing those MP's who didn't know how close they were to defeat, to fight on.