In October 1944, Horthy negotiated a cease-fire with the Soviets and ordered Hungarian troops to lay down their arms. In response, Nazi Germany launched the covert
Operation Panzerfaust, which took Horthy into "protective custody" in Germany and forced him to abdicate. Szálasi was made "Leader of the Nation" and prime minister of an Arrow Cross-dominated "
Government of National Unity" the same day. By this time,
Soviet and
Romanian forces had pushed deep into Hungarian territory. As a result, the Szálasi government's authority was limited to an ever-narrowing band of territory around Budapest. In this context, Arrow Cross rule was short and brutal. In under three months, their death squads killed as many as 38,000 Hungarian Jews. Arrow Cross officers helped
Adolf Eichmann re-start deportations 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. Virtually all Jewish males of conscription age were already serving as slave labour for the
Hungarian Army's
Forced Labor Battalions. Most died, including many who were murdered as they were returning home after the end of the fighting. Red Army troops reached the outskirts of Budapest in December 1944, and the
siege of the city began. Arrow Cross members and the Germans may have conspired to destroy the
Budapest ghetto, but any evidence remains disputed. Days before fleeing, Arrow Cross Interior Minister
Gábor Vajna ordered that streets and squares named for Jews be renamed. As control of the city's institutions weakened, the Arrow Cross trained their guns on the most helpless possible targets, including patients in the city's two Jewish hospitals on Maros Street and Bethlen Square, remaining women and children, and residents in the Jewish poorhouse on Alma Road. As order collapsed, Arrow Cross members continued their attacks on Jews so that the majority of Budapest's Jews were only saved by the heroic efforts of a handful of Jewish leaders and foreign diplomats, most famously Sweden's special envoy
Raoul Wallenberg, the
Papal Nuncio Monsignor
Angelo Rotta, Swiss Consul
Carl Lutz, Spanish Consul
Ángel Sanz Briz and the Italian cattle trader
Giorgio Perlasca. The Arrow Cross government effectively fell at the end of January 1945, when the Soviet Army took Pest and the Axis forces retreated across the Danube to Buda. Szálasi had escaped from Budapest on 11 December 1944, taking with him the
Hungarian royal crown, while Arrow Cross members and German forces continued to fight a rear-guard action in the far west of Hungary until the end of the war in April 1945. ==Post-war developments==