Impact of Soviet Control

• In February 1947, some leaders of the Smallholders' party and National peasant party were arrested and others fled Hungary as a result of Soviet pressure and control.

  In the following elections, the communist party became the largest single party, but because it did not have a majority it served in coalition government.
• A new constitution based on the Soviet Union system was drawn up, making Hungary a 'republic of workers and working peasants'.

  Matyas Rakosi emerged from the Communist party to lead Hungary and he began to impose a dictatorial role, calling himself a follower of Stalin.

  Hungary became a member of Cominform and the Hungarian communist party took its orders from Moscow (controlled by the Soviet Union)
• The Hungarian economy was controlled by the Soviet Union through Comecon.

  This body prevented Hungary from trading with Western Europe and receiving any Marshall aid. As a result, like the other satellite states of Eastern Europe, Hungary was forced to trade on uneven terms with the Soviet Union. This meant that Hungary did not always receive a fair price for its exports there.
• When Stalin died, Malenkov (the leader before Khrushchev) did not favour Rakosi, and in April 1955 he decided to replace him with Imre Nagy. Nagy brought about a lot of change in Hungary.