Operation Panzerfaust
Relations between Germany and the regency of Miklós Horthy collapsed in 1944 when Horthy attempted to negotiate a peace agreement with the Soviets and jump out of the war without German approval. Horthy was forced to abdicate after German commandos, led by Colonel Otto Skorzeny, held his son hostage as part of Operation Panzerfaust. Hungary was reorganized following Horthy's abdication in December 1944 into a totalitarian regime called the Government of National Unity, led by Ferenc Szálasi. He had been Prime Minister of Hungary since October 1944 and was leader of the Hungarist Arrow Cross Party. Its jurisdiction was effectively limited to an ever-narrowing band of territory in central Hungary, around Budapest since by the time they took power the Red Army was already far inside the country. Nonetheless, the Arrow Cross rule, short-lived as it was, was brutal. In fewer than three months, Arrow Cross death squads killed as many as 38,000 Hungarian Jews. Arrow Cross officers helped Adolf Eichmann re-activate the deportation proceedings from which the Jews of Budapest had thus far been spared, sending some 80,000 Jews out of the city on slave labour details and many more straight to death camps. Most of them died, including many who were murdered outright after the end of the fighting as they were returning home. Days after the Szálasi government took power, the capital of Budapest was surrounded by the Soviet Red Army. German and Hungarian forces tried to hold off the Soviet advance but failed. After fierce fighting, Budapest was taken by the Soviets. A number of pro-German Hungarians retreated to Italy and Germany, where they fought until the end of the war.