
The Austro-Hungarian Compromise of 1867, also known as the Ausgleich, established the dual monarchy of Austria-Hungary. This compromise was a result of the constitutional reorganization of the Habsburg Monarchy, which had been under discussion since 1859. The reorganization was deemed necessary due to the economic consequences of Austria's defeat in the war of 1866. The dual monarchy was a military and diplomatic alliance of two sovereign states, each with its own constitution, government, and parliament. The citizens of each half were treated as foreigners in the other half, and there was no common citizenship. The two halves of the empire were united by their common army, foreign policy, and the monarch, who personified the unity of the empire.
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What You'll Learn

The Austro-Hungarian Compromise of 1867
The compromise was reached in the aftermath of the Austro-Prussian War of 1866, which had weakened the Austrian Empire and left the Habsburg Monarchy on the verge of collapse due to monumental state debt and a financial crisis. The Habsburgs were forced to reconcile with Hungary to save their empire and dynasty. The compromise was negotiated by Hungarian statesmen Ferenc Deák and Gyula, Gróf (Count) Andrássy, and Emperor Franz Joseph of Austria.
The compromise established a personal union between the lands of the Hungarian crown and the western lands of the Habsburgs. It granted Hungary full internal autonomy and a responsible ministry, while Hungary agreed that the empire should remain a single great state for purposes of war and foreign affairs, thus maintaining its dynastic prestige abroad. The agreement also restored the Kingdom of Hungary's traditional status, both legal and political, which had been lost after the Hungarian Revolution of 1848.
The dual monarchy of Austria-Hungary lasted from 1867 until 1918, when it was dissolved shortly after Hungary terminated the union with Austria. During this period, Austria-Hungary was one of Europe's major powers, with a strong agriculture and food industry, as well as a large proportion of the exports to the rest of Europe. It was the second-largest country in Europe geographically and the third most populous, after Russia and the German Empire.
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The Hungarian crisis
Following the fall of Napoleon in 1814-15, Austria became the leader of the German states. However, this position was weakened after the Austro-Prussian War of 1866, which resulted in Austria's expulsion from the German Confederation. This military defeat had significant economic consequences and made it imperative to reorganise the constitutional structure of the Habsburg monarchy.
Hungary had long been a source of rebellion and resistance to Habsburg rule, with Hungarian nationalists seeking independence and the restoration of their historic constitution. The Hungarian Revolution of 1848 was a pivotal event, after which Emperor Franz Joseph imposed an 18-year-long military dictatorship and absolutist rule over Hungary. However, the Hungarians continued to advocate for their rights and the restoration of their traditional status.
The new Austrian chancellor, Friedrich Ferdinand, Freiherr (baron) von Beust, played a crucial role in resolving the Hungarian crisis. He abandoned the claim that Hungary was merely an Austrian province and instead framed the negotiations with Hungary as a dynastic affair, excluding non-Hungarians from the discussions. This approach induced Emperor Franz Joseph to recognise the need for a compromise with Hungarian politicians, Ferenc Deák and Gyula, Gróf (count) Andrássy.
The Austro-Hungarian Compromise of 1867, also known as the "Ausgleich" or "Compromise," established the dual monarchy of Austria-Hungary. This compromise transformed the Habsburg Monarchy into a unique alliance of two sovereign states, each with its own constitution, government, and parliament. The agreement restored Hungary's territorial integrity and its old historic constitution, granting Hungary full internal autonomy. In return, Hungary agreed that foreign affairs and defence matters would be "common" to both states, uniting them under a single monarch, Emperor Franz Joseph, who was recognised as King of Hungary.
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The Ausgleich
The Austro-Hungarian Compromise of 1867 transformed the Habsburg Monarchy into an alliance of two sovereign states, with each half of the empire having its own constitution, government, and parliament. The citizens on each half were also treated as foreigners in the other half. The two halves of the empire were united by their common army and foreign policy, with the monarch personifying the unity of the empire.
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The Hungarian attitude
The Hungarians' attitude towards the formation of the dual monarchy was one of compromise and a desire for greater self-governance. The Hungarians wanted to maintain their sovereignty and autonomy while also recognizing the benefits of a united front for war and foreign affairs. This compromise, known as the Ausgleich, was reached between Emperor Franz Joseph and the Hungarian political leaders, led by Ferenc Deák and Count Gyula Andrássy.
The Hungarians' attitude was shaped by their history of opposition to Habsburg rule and their desire for independence. Following Hungary's defeat against the Ottoman Empire in 1526, the Habsburgs assumed control of a small north-western portion of Hungarian territory. However, the Hungarians continued to seek greater self-governance and independence, as evidenced by the revolutions of 1848.
The Ausgleich, or Compromise of 1867, was a result of negotiations between the Emperor and Hungary, not between Hungary and the rest of the empire. The Hungarians maintained the validity of the April Laws while conceding that foreign affairs and defence were "common" to both Austria and Hungary. This compromise transformed the Habsburg Monarchy into an alliance of two sovereign states, with each half of the empire having its own constitution, government, and parliament.
The Hungarians' attitude towards the dual monarchy was also reflected in their reference to Franz Joseph and his successor as their king, not their emperor. This distinction symbolized the Hungarians' view of their relationship with the monarchy as a personal union between the lands of the Hungarian crown and the western lands of the Habsburgs. The Hungarians also had a strong sense of national identity, with the Magyars being the dominant ethnic group in Hungary, although they only constituted a small majority.
Overall, the Hungarian attitude towards the formation of the dual monarchy was one of compromise, a desire for self-governance, and a recognition of the benefits of a united front for war and foreign affairs. The Hungarians successfully negotiated for full internal autonomy while agreeing to a "common monarchy" for external affairs, resulting in the unique structure of the Austro-Hungarian Empire.
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The Pragmatic Sanction of 1723
The future succession to the throne of the Kingdom of Hungary became a matter of contention when Charles III, the last male of the House of Habsburg, acceded to the throne in 1711. The Hungarian crown had become a hereditary possession of the Habsburgs in 1687, but only men could inherit it. Charles had privately agreed with his older brother, King Joseph I, on the Mutual Pact of Succession in 1703, which provided for female succession to the Habsburg monarchy in the absence of male heirs. However, it gave precedence to Joseph's daughters over Charles's.
By the end of the 1710s, Charles had only two children, both daughters: Maria Theresa and Maria Anna. His nieces, Maria Josepha and Maria Amalia, agreed to cede their claim to the throne to Charles's daughters. Charles issued the Pragmatic Sanction of 1713, emphasising the indivisibility of the Habsburg domains and the rights of his future daughters. The Diet of Hungary elected to extend the succession rights to Charles's daughters in 1723, followed by the daughters of Joseph I and then the daughters of Leopold I.
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Frequently asked questions
The Austro-Hungarian Compromise of 1867, also known as the Ausgleich, established the dual monarchy of Austria-Hungary. This compromise was a result of Hungary's desire for independence and its wars of independence in opposition to Habsburg rule.
The Austro-Hungarian Compromise of 1867 was a deal struck between Emperor Franz Joseph and Hungarian politicians. It established a dual system in which each half of the empire had its own constitution, government, and parliament. The citizens of each half were treated as foreigners in the other half.
The agreement restored Hungary's territorial integrity and its old historic constitution, granting Hungary full internal autonomy. In return, Hungary agreed that the empire should remain a single great state for war and foreign affairs.
The Compromise created a "'common monarchy" consisting of the emperor, a minister for foreign affairs, and a minister of war. The two halves of the empire were united by a common army and foreign policy, with the monarch personifying the unity of the empire. The dual monarchy lasted until 1918 when Hungary terminated the union.

















![The Austro-Hungarian Empire; 1877 [Leather Bound]](https://m.media-amazon.com/images/I/617DLHXyzlL._AC_UY218_.jpg)





















