Ferenc Nagy, the Prime Minister of Hungary and a prominent member of the Smallholders' Party, faced intense political pressure in 1947 as the influence of the Hungarian Communist Party grew significantly. As Hungary recovered from World War II, the political atmosphere became increasingly tense, with the Communist Party gaining power and support from the Soviet Union. On May 31, Nagy was compelled to resign after the Communist Party accused him of plotting against the state—a serious allegation that threatened his political career and personal safety.

Following a series of events where the Communist Party orchestrated a campaign against Nagy, accusing him of conspiracy, they effectively used threats of denouncement to ensure their grip on the Hungarian government. This marked a turning point in the post-war governance of Hungary, where fears of civil instability and the appeal of Communist ideology turned many political factions against each other. With Nagy's resignation, the communists took decisive steps to quell political dissent and initiate a series of reforms that eliminated opposition parties.

Nagy's removal paved the way for a more authoritarian regime. The Communist Party's influence expanded, culminating in the establishment of a one-party state in Hungary. This shift not only affected domestic policies but also set the stage for Hungary's alignment with the Eastern Bloc, leading to decades of communist governance until the revolutions of 1989.