So just like the title asks, what if Hungary was split in two after WW2? The division would be along the Danube river, with Transdanubia( with Buda) being occupied by the Western Allies, while the rest( with Pest) would be occupied by the Soviets.

How would this affect the cold war, Europe and Hungary itself? What would happen after that? Also what about the economies of the two sides?
 
You might see Budapest as a whole being a joint occupation zone, not split by the river. This would mean that Austria has been occupied completely by the Western Allies, not split like OTL. You might very well see what happened to Austria, occupation ended with a guarantee of neutrality for Hungary. One fly in the ointment, unlike Austria, Hungary has a common border with the USSR and this would be something Stalin or his successors would be concerned about. After all, at some point if Hungary decides to shift more west than neutral, how can the USSR stop it. Had, before the end of the Cold War, Austria decided to end neutrality and join NATO, there really was not much the USSR could have done about it.
 
You might see Budapest as a whole being a joint occupation zone, not split by the river. This would mean that Austria has been occupied completely by the Western Allies, not split like OTL. You might very well see what happened to Austria, occupation ended with a guarantee of neutrality for Hungary. One fly in the ointment, unlike Austria, Hungary has a common border with the USSR and this would be something Stalin or his successors would be concerned about. After all, at some point if Hungary decides to shift more west than neutral, how can the USSR stop it. Had, before the end of the Cold War, Austria decided to end neutrality and join NATO, there really was not much the USSR could have done about it.

If the USSR had allowed Czechoslovakia to continue owning the Carpathian Ruthenia after the Second World War, Hungary and the Soviet Union wouldn't have a common border and there wouldn't be this problem.
 
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