Following the Nazi occupation of Hungary in March 1944, the pro-German Döme Sztójay was installed as Prime Minister of Hungary. The Arrow Cross Party was then legalized by the government, allowing Szálasi to expand the party. When Sztójay was deposed in August, Szálasi once again became an enemy of the Hungarian government and Regent Miklós Horthy ordered his arrest. By this time, Horthy realized that Hungary's position was untenable, and began putting out feelers to the Allies. The Germans were concerned that Horthy would succeed in extricating Hungary from the war. They had, however, waiting in the wings, a perfect ally in Szálasi. When the Germans learned of the Regent's plan to come to a separate peace with the Soviets and exit the Axis alliance, they kidnapped Horthy's son, Miklós, Jr. and threatened to kill him unless Horthy abdicated in favor of Szálasi. Under duress, Horthy signed a document announcing his own abdication and naming Szálasi prime minister–effectively giving "legal sanction" to an Arrow Cross coup. In his memoirs, Horthy contended the appointment of Szálasi was invalid, saying, "A signature wrung from a man at machine-gun point can have little legality." The Germans then pressured Parliament to install Szálasi as Head of State as well. National leader Szálasi's Government of National Unity turned the Kingdom of Hungary into a puppet state of Nazi Germany formed on 16 October 1944 after Regent of Hungary Miklós Horthy was removed from power during Operation Panzerfaust (Unternehmen Eisenfaust) . The Hungarian parliament approved the formation of a Council of Regency (Kormányzótanács) of three. On 4 November, Szálasi was sworn as Leader of the Nation (nemzetvezető). He formed a government of sixteen ministers, half of which were members of the Arrow Cross Party. While the Horthy regency had come to an end, the Hungarian monarchy was not abolished by the Szálasi regime, as government newspapers kept referring to the country as the Kingdom of Hungary (Magyar Királyság, also abbreviated as m.kir.), although Magyarország (Hungary) was frequently used as an alternative. Szálasi and his "Quisling government" had little other intention or ability but to execute the party's ideology and to maintain control in Nazi-occupied portions of Hungary as the Soviet Union invaded. He did this in order to reduce the threat to Germany. Szálasi's aim was to create a one-party state based on Hungarism. Under his rule as a close ally of Germany, the Germans, with