Horthy era-Interwar period

István Bethlen

From an old transylvanian family, supporter of bourgeoisie society, rejected dictatorsip and mass democracy, rejected revolutions, he was a former memebre of the ABC, 1921-31 Prime Minister, opposed participation in WW2, 1944 deported by Soviets

Where were Charles IV. and his wife Zita exiled to?

The Island of Madeira

Consolidation aims of Bethlen

Stablizing the Horthy regime, consolidating political life, reorganizin the structure of economy, carrying out social reforms, consolidating foreign affairs

Party of Unity

Bethlen-Peyer Pact

signed in 1921, the Social Democrat’s promised to: support the consolidation, prevent political strikes, stop agitation among agricultural workers, railwaymen and civil servants. In return, the mSZDP granted legality and representation in the parliament

Importance of the Pact

Bethlen recognized the importance of the trade unions, his goal was to turn the Social Democrats into a loyal opposition by ensuring restricted freedom.

It was beneficial for Bethlen because: the most dangerous opponent was deactivated, having S.Ds is good for international support, this measure is not dangerous because the MSZDPcan’t get too much represntatives due to census and public voting

It was beneficial for Károly Peyer because:

They gained back legal status as a party, they gained representation in the parliament, and this way they could criticise the government publicly 

New electoral law

It was issued under Betlen both agianst the extremist groups and the MSZDP: it lowered the proportion of voters, as people could only vote publicly, except cities where their votes remained secret (secret voting)

Economy under Bethlen

It had to be restructured due to the effects of Trianon, Hungary was in an unfavourable conditions in foreign policy which was bad for trade.

Light industry expansded and developed, and new branches of industry also came to the picture (electric, chemcial, autom)

Inflationary policy of Bethlen

inflow of capital to rew up the economy

1922: Hungary joined the League of Nations

1924: National Bank established+applied for loan from the L.o.N.

1927: crown lost its value due to the inflatiom—>pengő became the new currency

1929: production exceeded the rate of 1913

Impact of the loan from L.o.N.

Restructuring and innovation was financed and supported such as:

-engineering of agriculture(tresher, tractor, harvester)

-canning industry (csepel)

-electric industry

-electro technology and machine industry—> Orion radio and telephone

-chemical industry(fertilizer manure)

-mining (bauxite)

-toursim industry (palace at Lillavárad)

Why were Smallholders granted more land in the Nagyatádi land reform?

to create a loyal social basis for the regime(subsidies and financed building programs)

Bethlens Foreign policy