With the defeat of the Central Powers in the War, the German Empire and Habsburg Empire desintegrated (1918). Hungary became independent. As in Germany, the Communists attempted to seize control. The Social Democrats joined them. Béla Kun led the Hungarian Soviet Republic (1919). Kun and the Communists began nationalizing industry and land. The nationalization policy proved unpopular. The Communist atheist policy was also resented. Kun attacked Czechoslovakia and Romania to spread the Revolution. Admiral Miklos Horthy, an officer in the Austro-Hungarian Navy, formed an army to oppose the Communists. Romanian forces occupy Budapest and hand power over to Horthy. Kun after his failure fled east and oversaw the bloody Red Terror in the Crimea (1920). He would eventualy become one of Stalin's victims. In Hungary reprisals followed the collapse of Kun's Soviet Repiblic. Many Communists were executed. The Trianon Treaty with the Allies ending the War reduced Hungarian territory by two thirds (1920). The National Assembly re-establishes the Kingdom of Hungary, but the Allies refused to allow the return of a Habsburg king. Hungarians held elections (January 1920). Parliament decreed that the throne of Hungary was 'vacant'. They elected Horthy regent (March 1920). The ousted Emperor Karl I made two unsuccessful efforts to regain his throne (1921). The Austro-Hungarian Empire mde little effort to industrialize. The only major industry developed in the Czech lnds with little imperial support. Thus Hungary when it became independent had a largely agricultural economy. Horthy made no effort to change this and itroduced authoritative rule. Hungary remained a relatively backward, poor country. It was, however, irredentist issues that dominsted Hungarian politics. Hungary under the Hapsburgs was not an indepedent coutry, but it was a political entity. The Hapsburg Hungary of more than 20 million had become a small country with less than 8 million people. The frontiers of Hungary began to approximate those of modern Hungary. Most of the lost territory was populated largely by other natinalities. About a third of ethnic Hungarians found themselves minorities in other countries. Hungarian nationalists were horrified. Not only did they find the new Hungarian state a fraction of what they had forseen, but large numbers of ethnic Hungarians were left within the borders of neighboring states. This would result in disputes with nigboring states (Czechoslovkia, Romania, and Yugoslvia and theats of war during the 1920s and 30s. Horthy's rule is characterised by resentment over the loss of Hungarian territories. And Fascist political parties bwgin to grow. The losses of land and population in World War I engendered resentment in Hungary and fueld the growth of Fascism. The Depression further move people toward radical parties, Communist and Fascists. As a result, Horthy with some trepedation begins to ally his country with NAZI Germany. Hungary moves closer to NAZI Germany and is rewarded with southern Slovakia (from Czechoslovakia) and northern Transylvania (from Romania).
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