The years between the two great wars are generally considered as years of crisis: although Hungary regained its independence after 400 years, this fact was overshadowed by the tragic consequences of the lost war. The political system, although the country had the formalisms of a parliamentary democracy, was very much authoritarian. The economy collapsed and just when it had been restored a little bit, the Great Recession of 1929-33 hit it hard again.
In its foreign policy the country was seeking the revision of the peace treaty: this policy insulated it politically in the 20s and pushed it towards Hitler's Germany in the 30s. When Hitler finally awarded some territories to Hungary in 1939-41, the country became a German ally with all the tragic consequences one can imagine. About one million Hungarians died during the war: soldiers on the front, Hungarian Jews in concentration camps and civilians during 1944-45, when the Red Army eventually drove out the German Wehrmacht. Of course, much of the country has been destroyed during the heavy fightings (See more info on the siege of Budapest here). The country once again was on the loser's side and the new peace treaty (once and for all) confirmed the losses of the previous war again.
The years after WWII were even worse than those between the two wars: as in other countries in the East, the Red Army suffered from heavy amnesia and forgot to go home: after a short democratic episode (between 1945-48) the Soviets pushed the Communists into power and a strict Stalinist dictatorship started. Yet another nightmare of the XX. century…
The siege of Budapest
The siege of Budapest lasted about nine weeks in the winter of 1944-45 and the last Germans surrendered only on 12th February 1945. 20% of the buildings has been totally destroyed.

