Austria-Hungary quickly disintegrated after the war. The General Congress of Bukovina proclaimed the union of the province with Romania on 28 November 1918, and the Grand National Assembly proclaimed the union of Transylvania, Banat, Crișana and Maramureș with the kingdom on 1 December. Peace treaties with Austria, Bulgaria and Hungary delineated the new borders in 1919 and 1920, but the Soviet Union did not acknowledge the loss of Bessarabia.
The 1938 Munich Agreement convinced King Carol II that France and the United Kingdom could not defend Romanian interests. German preparations for a new war required the regular supply of Romanian oil and agricultural products. The two countries concluded a treaty concerning the coordination of their economic policies in 1939, but the King could not persuade Adolf Hitler to guarantee Romania’s frontiers. Romania was forced to cede Bessarabia and Northern Bukovina to the Soviet Union on 26 June 1940, Northern Transylvania to Hungary on 30 August, and Southern Dobruja to Bulgaria in September.
After the territorial losses, the King was forced to abdicate in favor of his minor son, Michael I, on 6 September, and Romania was transformed into a national-legionary state under the leadership of General Ion Antonescu. Antonescu signed the Tripartite Pact of Germany, Italy and Japan on 23 November. The Iron Guard staged a coup against Antonescu, but he crushed the riot with German support and introduced a military dictatorship in early 1941.
Romania entered World War II soon after the German invasion of the Soviet Union in June 1941. The country regained Bessarabia and Northern Bukovina, and the Germans placed Transnistria (the territory between the rivers Dniester and Dnieper) under Romanian administration. Romanian and German troops massacred at least 160,000 local Jews in these territories; more than 105,000 Jews and about 11,000 Gypsies died during their deportation from Bessarabia to Transnistria. Most of the Jewish population of Moldavia, Wallachia, Banat and Southern Transylvania survived, but their fundamental rights were limited. After the German occupation of Hungary in March 1944, about 132,000 Jews – mainly Hungarian-speaking – were deported to extermination camps from Northern Transylvania with the Hungarian authorities’ support.
After the Soviet victory in the Battle of Stalingrad in 1943, Iuliu Maniu, a leader of the opposition to Antonescu, entered into secret negotiations with British diplomats who made it clear that Romania had to seek reconciliation with the Soviet Union. Romania switched sides during the war, and nearly 250,000 Romanian troops joined the Red Army’s military campaign against Hungary and Germany, but Joseph Stalin regarded the country as an occupied territory within the Soviet sphere of influence. Stalin’s deputy instructed the King to make the Communists’ candidate, Petru Groza, the prime minister in March 1945. The Romanian administration in Northern Transylvania was soon restored, and Groza’s government carried out an agrarian reform. In February 1947, the Paris Peace Treaties confirmed the return of Northern Transylvania to Romania, but they also legalized the presence of units of the Red Army in the country.
Communism:
During the Soviet occupation of Romania, the Communist-dominated government called for new elections in 1946, which they fraudulently won, with a fabricated 70% majority of the vote. Thus, they rapidly established themselves as the dominant political force. Gheorghe Gheorghiu-Dej, a Communist party leader imprisoned in 1933, escaped in 1944 to become Romania’s first Communist leader. In February 1947, he and others forced King Michael I to abdicate and leave the country and proclaimed Romania a people’s republic. Romania remained under the direct military occupation and economic control of the USSR until the late 1950s. During this period, Romania’s vast natural resources were drained continuously by mixed Soviet-Romanian companies (SovRoms) set up for unilateral exploitative purposes.