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See more Images of May Follow Reuters Facebook Twitter RSS YouTube Read Greeks vote in election that could decide fate of euro 2:54am EDT President Obama, family, attend wedding in Chicago 1:05am EDT Hope lifts Wall Street before Greek election | 15 Jun 2012 Lindsay Lohan tweets about "cute" paramedics after exhaustion bout 16 Jun 2012 Wall Street Week Ahead: Greek elections to keep tensions high 15 Jun 2012 Discussed 138 Most say Bush to blame for weak U.S. economy, poll finds 111 Joy and anger as Obama relaxes deportation rules 109 China could impound European planes in carbon row Watched U.S. Morning Call: Greek stocks soar; Nokia job cuts Thu, Jun 14 2012 Bodies found after Peru avalanche Thu, Jun 14 2012 New NASA telescope a black hole hunter with X-ray eyes Wed, Jun 13 2012 Hungarians hail Horthy as recession fans nationalism Tweet Share this Email Print Related News CEE MONEY-Growth-starved Hungary eyes a bank of its own Fri, Jun 15 2012 Hungary could end bank tax from early 2013 - Orban Tue, Jun 12 2012 Exclusive: Hungary losing 1 billion euros a year from food VAT fraud Thu, Jun 7 2012 OTP chief optimistic on Hungary's IMF deal Thu, Jun 7 2012 UPDATE 1-Russia's Rosatom eyes Hungary nuclear tender Tue, Jun 5 2012 Related Topics World » 1 of 4. Right-wing nationalists and residents of the village of Csokako, located 80km (50 miles) southwest of Budapest, attend a ceremonial unveiling of a statue dedicated to Miklos Horthy, a controversial former regent of Hungary, June 16, 2012. Credit: Reuters/Laszlo Balogh By Gergely Szakacs CSOKAKO, Hungary | Sun Jun 17, 2012 12:19am EDT CSOKAKO, Hungary (Reuters) - About 1,000 Hungarians attended the unveiling of a statue of controversial World War Two head of state Miklos Horthy on Saturday, in a sign that economic hardship is feeding radical nationalism. Activists in paramilitary outfits flew the flags of the far-right Jobbik opposition party and various nationalist groups in the village of Csokako, 87 km (54 miles) west of Budapest, which has erected the statue. Horthy ruled Hungary for 24 years and, as head of state in the early years of World War Two, entered an uneasy alliance with Nazi Germany. In 1944 the Nazis occupied Hungary and about 437,000 Jews were deported over a period of 56 days, most to their deaths, according to Budapest's Holocaust Memorial Centre. The total number of the Hungarian Jewish victims during the Holocaust exceeded half a million. Gyorgy Furesz, the mayor of Csokako, said the statue was designed to foster a dialogue about Horthy. "Unfortunately the country was torn between two insane dictators so he was left with bad and even worse options," Furesz said before announcing that the square hosting Horthy's statue would be renamed Greater Hungary Square in memory of the pre-war status quo. "Hungary was humiliated in an unprecedented manner after World War One," said Zoltan Kemenar, a 34-year-old engineer, dressed in the outfit of the nationalist 64 counties youth movement. "Horthy restored faith to this humiliated nation." Just two years after Prime Minister Viktor Orban's election landslide, support for his conservative Fidesz is the lowest in over a decade, while Jobbik, the second-largest opposition party in parliament, is capitalizing on discontent. Hungary is seeking an international loan to stabilize its indebted economy and heading into another recession after a steep downturn in 2009. Opinion polls show growing discontent with mainstream political groups after years of austerity. The government says the debate about Horthy's role in Hungarian history is an academic one in which it has no role. "The prime minister has made it clear several times during his speeches in parliament that the government will protect all minorities and that no one has to be afraid in the country," the government spokesman's office said in an emailed response. Slomo Koves, an orthodox rabbi in Budapest, said the government should be more forceful in implementing laws against hate speech and various forms of extremism. "Obviously they cannot get involved in every city's decision whether or not to put up a statue but on the general issue and motivating a healthy public discourse on the issue is their job in my view," he said. "If people are poor they are more open to extreme ideas." (Reporting by Gergely Szakacs; editing by Andrew Roche) World Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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