
Austria-Hungary, also known as the Austro-Hungarian Empire, was a constitutional monarchy in Central Europe from 1867 until 1918. It was formed through a compromise between the Austrian Empire and the Kingdom of Hungary, which gave Hungary full internal autonomy and its own parliament, while the two nations shared a single monarch. The two countries also maintained unified diplomatic and defence policies, with common ministries of foreign affairs, defence, and finance. This dual monarchy included what are now Austria, Hungary, the Czech Republic, Slovakia, Slovenia, Croatia, and Bosnia and Herzegovina, as well as parts of several other modern European countries.
| Characteristics | Values |
|---|---|
| Time Period | 1867-1918 |
| Territory | Austria, Hungary, Czech Republic, Slovakia, Slovenia, Croatia, Bosnia and Herzegovina, and parts of Poland, Romania, Ukraine, Italy, and Yugoslavia |
| Type of State | Multi-national constitutional monarchy |
| Type of Union | Dual Monarchy |
| Sovereignty | Two sovereign states with a single monarch |
| Monarch's Title | Emperor of Austria and King of Hungary |
| Monarch's Name | Franz Joseph |
| Ministries | Foreign Affairs, Defence, and Finance |
| Powers | Foreign Affairs, Military, and Centralised Political Power |
| Languages | Equality of all customary languages |
| Economy | Strong agriculture and food industry, manufacturing industries, and machine-building |
| Dissolution | 1918 after Hungary terminated the union |
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What You'll Learn

The Austro-Hungarian Compromise of 1867
The compromise only partially restored the pre-1848 sovereignty and status of the Kingdom of Hungary, separate from and no longer subject to the Austrian Empire. It ended the 18-year-long military dictatorship and absolutist rule over Hungary instituted by Emperor Franz Joseph after the Hungarian Revolution of 1848. The territorial integrity of Hungary was restored, along with its old historic constitution. Hungarian political leaders sought to regain the traditional legal and political status of the Hungarian state, which had been lost after the 1848 revolution.
The compromise was negotiated by Hungarian statesman Ferenc Deák, who initially supported Hungarian independence but later advocated for a modified union under the Habsburgs. Deák's argument was based on the Pragmatic Sanction of 1723, which stated that constitutional governing of Hungary was fundamental to Habsburg rule. Foreign policy, defence, and financing them were the most important joint affairs of the resulting dual monarchy.
The Austro-Hungarian Compromise transformed the Habsburg Monarchy into an alliance of two sovereign states, each with its own constitution, government, and parliament. The Austrian half, known as Cisleithania, consisted of seventeen historical crown lands and was defined as a multinational state, granting numerous rights to individual nationalities. The Hungarian half, or Transleithania, was dominated by the Magyars, but also included various non-Magyar ethnic groups, who were treated as minorities.
The compromise was unpopular among many Hungarians, who saw it as a betrayal of their interests and the achievements of the 1848 reforms. However, it was supported by ethnic minority voters in the Kingdom of Hungary, which helped maintain the political stability of the dual monarchy.
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$47.95

The Dual Monarchy
The Austrian half of the empire, known as Cisleithania, consisted of seventeen historical crown lands and was a multinational state, granting numerous rights to its individual nationalities. The Hungarian half, known as Transleithania, was also multi-ethnic, with the Magyars being the dominant nation but only a small majority. The two halves of the empire had their own constitutions, governments, and parliaments, and citizens of each half were treated as foreigners in the other.
However, the Dual Monarchy faced social and political problems, as well as conflicts between dominant nationalities. The uncompromising Magyarization policy of the Hungarian elite, for example, alienated other nationalities from the aims of the Hungarian state. The Dual Monarchy was dissolved in 1918 when Hungary terminated the union with Austria.
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The Ausgleich
The agreement was a compromise between the emperor and Hungary, not between Hungary and the rest of the empire. The peoples of the empire were not consulted, despite Franz Joseph’s earlier promise not to make further constitutional changes without the advice of the imperial parliament, the Reichsrat. Hungary received full internal autonomy, together with a responsible ministry, and, in return, agreed that the empire should still be a single great state for purposes of war and foreign affairs. Franz Joseph thus surrendered his domestic prerogatives in Hungary, including his protection of the non-Magyar peoples, in exchange for the maintenance of dynastic prestige abroad. The “common monarchy” consisted of the emperor and his court, the minister for foreign affairs, and the minister of war. There was no common prime minister (other than Franz Joseph himself) and no common cabinet.
The Dual Monarchy of Austria-Hungary was a military and diplomatic alliance of two sovereign states with a single monarch who was titled both Emperor of Austria and King of Hungary. Austria-Hungary was considered one entity for foreign relations and war. The Austrian and Hungarian states were co-equal in power and conducted unified diplomatic and defence policies. For these purposes, "common" ministries of foreign affairs and defence were maintained under the monarch's direct authority, as was a third finance ministry responsible only for financing the two "common" portfolios.
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The Hungarian parliament
From 1527, when the personal union between Austria and Hungary was established, the Kingdom of Hungary maintained its independent budget and separate governance through the Council of Lieutenancy of Hungary (the Gubernium) and the Hungarian Royal Court Chancellery in Vienna. The Hungarian government and parliament were temporarily suspended after the Hungarian Revolution of 1848-1849 but reinstated following the Austro-Hungarian Compromise of 1867.
The Compromise of 1867, also known as the Ausgleich, was a pivotal moment for the Hungarian parliament. It was passed as a constitutional law by the Hungarian parliament in March 1867, officially establishing the dual monarchy of Austria-Hungary. The Ausgleich secured important rights and freedoms for individuals, including freedom of belief and education, and created a more impartial judiciary. While the ministers remained responsible to the emperor, the compromise granted Hungary full internal autonomy and its own responsible ministry.
The National Assembly, as the Hungarian parliament is currently known, consists of 199 members (down from 386 between 1990 and 2014) elected to four-year terms. Members are elected through a semi-proportional representation system, with parties needing at least 5% of the popular vote to gain list seats. The Assembly includes 25 standing committees that debate and report on bills and supervise the activities of ministers.
In summary, the Hungarian parliament, with its history dating back to the medieval kingdom of Hungary, played a significant role in shaping the Compromise of 1867 that established the dual monarchy of Austria-Hungary. It continued to be a vital institution in the economic development of the Kingdom of Hungary within the Austria-Hungary empire and remains the legislative body of modern-day Hungary.
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The Bosnian Crisis
The annexation was timed to coincide with Bulgaria's declaration of independence from the Ottoman Empire on 5 October 1908. The day after Bulgaria's declaration, Emperor Franz Joseph announced his determination to recognise and grant the Bosnian people an autonomous and constitutional regime under his authority as their annexing sovereign. Austria-Hungary then announced its withdrawal from the Sanjak of Novi Pazar, which separated Montenegro from Serbia and prevented their geographic and political union. The Bosnian population was already religiously divided into Muslims, Catholics, and Orthodox Christians.
Serbia, which was closely related to Bosnia and Herzegovina geographically and ethnically, was outraged by the annexation and demanded that Austria cede a portion of Bosnia and Herzegovina. The Russian diplomat, Izvolsky, was forced to support the Serbian claims due to anti-Austrian opinion in Russia. Austria, firmly supported by Germany, threatened to invade Serbia if it persisted in its demands. Russia, unable to risk a war against both Austria-Hungary and Germany, accepted the annexation in March 1909.
The crisis was resolved without immediate warfare, but it permanently damaged relations between Austria-Hungary and its neighbours, especially Serbia, Italy, and Russia. The resulting embittered relations and resentment at having been deceived and humiliated contributed to the outbreak of World War I.
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Frequently asked questions
Austria-Hungary was a multi-national constitutional monarchy in Central Europe between 1867 and 1918. It was formed by the Austro-Hungarian Compromise of 1867, also known as the Ausgleich, which was a constitutional law passed by the Hungarian parliament.
The Austria-Hungary Compromise was an agreement between the emperor and Hungary, which gave Hungary full internal autonomy and a responsible ministry. In return, Hungary agreed that the empire should be a single great state for war and foreign affairs purposes.
The Dual Monarchy consisted of what are now Austria, Hungary, the Czech Republic, Slovakia, Slovenia, Croatia, Bosnia and Herzegovina, and parts of Poland, Romania, Ukraine, Italy and Yugoslavia.





































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