Then, in October 1944, Horthy announced a cease-fire with the Allies and ordered the Hungarian Army to lay down their arms. In response, Nazi Germany launched Operation Panzerfaust, a covert operation which forced Horthy to abdicate in favour of the Fascist and militantly racist Arrow Cross Party, which was led by Ferenc Szálasi. This was followed by an Arrow Cross coup in Budapest on the same day. Szálasi was declared "Leader of the Nation" and prime minister of a "Government of National Unity".