Second Hungarian Republic

The Second Hungarian Republic was a short-lived government in Hungary that began on February 1, 1946, after the end of the Kingdom of Hungary. It ended on August 20, 1949, when it was replaced by the Hungarian People's Republic.

This new government formed after World War II in Europe ended and Soviet forces occupied Hungary. At first, it was a mix of different political groups, including the Independent Smallholders' Party and the Hungarian Communist Party. However, the Communists, led by Mátyás Rákosi, slowly took control. They used clever strategies, which they called "salami tactics," to remove their opponents from power.

By 1947, the Communists had removed most of their rivals and controlled the government. They changed elections to favor themselves and merged other parties into their own. They also took control of important businesses and industries. In 1949, Hungary became a people's republic with the Communists as the only party in charge. This situation continued until the end of Communism in Hungary in 1989–90.

History

Beginnings

From September 1944 until April 1945, as World War II in Europe ended, the Red Army occupied Hungary. The Siege of Budapest lasted almost two months and much of the city was destroyed. The peace treaty signed by Hungary in 1947 returned Hungary's borders to what they were before 1938.

The Soviets set up a new government in Debrecen in December 1944. Zoltán Tildy became the temporary leader. The Soviet Union demanded repayment for war costs.

Hyperinflation

In 1945 and 1946, Hungary faced very high prices and loss of value of its money, the pengő. This was due to the need to pay for war costs and weak collection of taxes. To fix the economy, a new currency called the forint was introduced in 1946.

German deportation

Between 1946 and 1948, about half of Hungary's ethnic German minority (around 250,000 people) were moved to Germany. There was a forced "exchange of population" between Hungary and Czechoslovakia.

Soviet control

In elections in November 1945, the Independent Smallholders' Party won most votes. The Hungarian Communist Party, led by Mátyás Rákosi and Ernő Gerő, won less but became very powerful with Soviet support. The Soviet commander would not allow the Smallholders Party to lead alone.

By 1947, the Communists had reduced the power of other parties. In 1948, they forced the Social Democrats to join them. By 1949, the Communists controlled everything. On 20 August 1949, Hungary became the People's Republic of Hungary with a new constitution.