Following the announcement of an armistice with the Soviet Union, the Hungarian government found itself in a precarious position. This decision came as Axis powers faced increasing pressure from Soviet forces on the Eastern Front. The announcement alarmed Nazi Germany, which feared that Hungary's withdrawal could open a pathway for Soviet advances into Central Europe. To counter this threat, German forces swiftly acted to overthrow the Hungarian government, exemplifying their broader strategy of securing Axis control and preventing any shift toward the Allies during the final phases of World War II.

In response to the armistice, German troops entered Budapest and effectively occupied Hungary. They replaced the Hungarian leaders with individuals more sympathetic to the Nazi regime, solidifying their influence in the region. Among the most notable figures installed was the pro-German politician Ferenc Szálasi, leader of the Arrow Cross Party. The new government aimed to reverse Hungary’s armistice with the Soviets and restore its commitment to the Axis powers, further engulfing the nation in the ongoing conflict.

The repercussions of Germany's intervention were immediate and severe. The installation of a puppet regime fueled violent repression against both political opponents and Jews, who faced increased persecution. As the war progressed, Hungary became a battleground as both Nazi and Soviet forces clashed, leading to immense suffering and loss of life among the Hungarian populace. The decisions made during this period would affect Hungary's future for decades to come and illustrate the fraught balance of power in World War II Europe.