The Second Vienna Award, arbitrated by Nazi Germany and Fascist Italy, signed on 30 August 1940, assigned the territory of Northern Transylvania from Romania to Hungary.

Although the devolution of Northern Transylvania had been made under the diplomatic pressure of Germany, the country did not directly intervene in the Treaty of Craiova.

[5] The treaty was ratified on the Romanian side on 13 September by Prime Minister and Conducător Ion Antonescu, but not by King Michael I.

[2] The surrender of the Cadrilater ("Quadrilateral", another name for Southern Dobruja) was interpreted by the Romanian political class as "a mutilation of the country" forced by the pressures of the Axis, and by the authorities in Bulgaria as the "correction of an injustice".

[10] Bulgaria had to compensate the displaced Romanians for their losses of equity,[3] and pay Romania 1000 million lei for investments made to the region.

Romania additionally proposed to exchange all members of the respective ethnic minorities residing in the rest of the two countries, but this was rejected by Bulgaria.