It was labelled as a terrorist organisation by the First Republic following the re-integration of Barceras and Valencia into the Estandér nation. The VFF, fitting to their government designation, carried out acts of terrorism in major Estandér cities, mostly in Estandér-settled areas in the overseas regions. The largest attack carried out by the VFF was the 1954 Basca Bombing, which targeted the city centre of Praça de Domingues. It killed 253 people and injured hundreds more. The VFF continued insurgent operations until March 3, 1981, when the Second Republic agreed to sign the Guiviera Accords. The Guiviera Accords changed it so that the overseas territories could have representation in the reformed Chamber of Deputies and legalisation of the VFF as a regional political party. Full recognition of Deutsch as a national language granted it legal protection from the government, it also made it legal to be taught in school and be used in academia. In German Valencian areas, the VFF dominated local elections and became the most influential political organisation on the island. A Valencian Parliament was also established, however, the VFF managed to only occupy a few seats due to mainland Estandér politicians holding most of the seats.

Emanuel-Alexander von Brünn was elected on September 5, 2030, as leader of the VFF. He was one of the more radical members and, thus, once he had control over the VFF started to remodel the organisation into what it once was. He was famous for his fiery speeches and racially motivated ideology, calling for the removal of all Estandérs in Barceras and Valencia, native or otherwise. A low-intensity insurgency occurred in Valencia when the ARI assassinated prominent members Salvador de Distel and Joaquim de Sepp-Alvarenga in mid-2031, taking the lives of 2,000+ people. This lasted until January 4, 2032, when Brünn was deposed by his party members in turn for increased rights for Valencia and a peaceful resolution to the conflict. The 'German Friendship' policy allowed for more representation in the local and national Parliament and an easier election process and participation for Valencian Germans. The official paramilitary organisation of the VFF, the 'Freisoldaten' were disbanded as well.

The VFF could not save themselves though as on March 11, 2032, they were declared illegal. Surprisingly, there was no backlash from the majority of the Valencian German population. The Supreme Court charged several party leaders, including party leader Benedict Martin, with sedition and insurgency. Paramilitary groups loyal to the now-disbanded VFF terrorised the countryside, however, proved unsuccessful due to civilian unwillingness and federal military presence. Long-time rivals of the VFF, the Valencian Constabulary, occupied VFF strongholds and kept the peace in the major cities. Amid a lack of German representation in Parliament, the Falennische Sozialdemokratische Partei, or the Valencian Social Democratic Party, emerged from the remnants of the 'Left-VFF.' A spiritual successor in the form of the Unabhängigkeit für Falenn, or the Independence for Valencia party, was also established by the 'Right-VFF.'