
Austria-Hungary, also known as the Austro-Hungarian Empire, was one of Europe's major powers and the second-largest country in Europe geographically. The empire was formed in 1867 through a compromise between Emperor Franz Joseph and Hungary, resulting in a dual monarchy with shared diplomatic and defence policies. The borders of this empire included various territories such as Croatia, Bosnia and Herzegovina, and Montenegro, with Poland and Romania as neighbouring states. The fall of the empire came about after World War I, leading to the establishment of the separate states of Austria and Hungary with reduced borders.
| Characteristics | Values |
|---|---|
| Legal successor states | German Austria and the Hungarian Democratic Republic |
| Resulting countries' sizes | Small-sized and landlocked |
| Territories | Contained sizeable German- and Hungarian-speaking populations |
| Territory | The second-largest country in Europe |
| Population | The third-most populous country in Europe and among the ten most populous countries worldwide |
| Union | A real union between Cisleithania and Transleithania |
| Countries in the union | The Austrian Empire and the Kingdom of Hungary |
| Countries' powers | Co-equal |
| Common ministries | Foreign affairs, defence, and finance |
| Official name | Austria-Hungary |
| Hungary's autonomy | Full internal autonomy |
| Union type | "Common monarchy" |
| Union leaders | Emperor Franz Joseph and his court, the minister for foreign affairs, and the minister of war |
| Border with Austria | 240 kilometres (149 mi) long |
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What You'll Learn

The Austro-Hungarian Empire in 1914
The Austro-Hungarian Empire, also known as Austria-Hungary, the Dual Monarchy, or the Habsburg Monarchy, was a constitutional monarchy in Central Europe from 1867 to 1918. It was formed through the Austro-Hungarian Compromise of 1867, which established two independent states, Austria and Hungary, under a single monarch. The Emperor of Austria was also the King of Hungary, and the two states shared a common ministry for foreign affairs, a joint military, a common currency, and a trade policy. The Austro-Hungarian Empire was one of the major powers in Europe and was the second-largest country in Europe by area and the third-most populous after Russia and Germany.
In 1914, the year World War I began, the Austro-Hungarian Empire faced significant challenges. The assassination of Archduke Franz Ferdinand in Sarajevo, the capital of the annexed territory of Bosnia and Herzegovina, intensified religious and ethnic hostilities within the empire. This event ultimately triggered the invasion of Serbia in July 1914, marking the start of World War I. The invasion of Serbia turned out to be a disaster, with the Austro-Hungarian Army suffering heavy losses and making no territorial gains by the end of the year. The empire also faced setbacks and severe casualties on other fronts, including against the formidable Imperial Russian Army.
The Austro-Hungarian Empire had a large and diverse military at the outbreak of World War I, with 48 infantry divisions and 11 cavalry divisions. However, they faced equipment shortages, particularly in artillery, when compared to other European divisions. The empire's military performance was further hampered by the incompetence of the Austrian high command. Despite these challenges, the empire managed to occupy Serbia in 1915 with support from its allies.
In addition to military setbacks, the Austro-Hungarian Empire experienced economic difficulties during World War I. Inflation soared, erasing the cash savings of the middle class. Food shortages became increasingly dire, with the Hungarian half of the empire providing crucial supplies to sustain the military's war efforts. The diverse nationalities within the empire began to seek their own nation-states, contributing to the gradual disintegration of the empire by October 1918.
The Austro-Hungarian Empire played a significant role in the lead-up to World War I and experienced social, economic, and military transformations during the conflict. The war exposed the shortcomings of the empire's military and leadership, and the ongoing hardships ultimately led to its dissolution in 1918.
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The Ausgleich constitutional law
Prior to the Ausgleich, Hungary had a unique status within the Austrian Empire. It possessed a constitution that predated Habsburg rule and limited the power of the monarchy. In 1804, Holy Roman Emperor Francis II established the Austrian Empire, which formally included Hungary. However, Hungary's constitution prohibited it from being subsumed into another state, creating a complex situation.
The Ausgleich Compromise aimed to resolve this issue by restoring Hungary's independence and creating a dual monarchy. Franz Joseph I ruled as Emperor of Austria and King of Hungary, but the two countries maintained separate governments, legislative bodies, and prime ministers. Hungary regained its old constitution, legal system, and parliamentary sovereignty.
Under the Ausgleich, common ministries of foreign affairs, defence, and finance were established, with the emperor retaining authority over these areas. The agreement ended the 18-year-long military dictatorship and absolutist rule imposed by Emperor Franz Joseph after the Hungarian Revolution of 1848. It also granted Hungary full internal autonomy and ensured the protection of individual rights and an impartial judiciary.
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The Hungarian Democratic Republic
The history of the Hungarian Democratic Republic can be traced back to the Austro-Hungarian Dual Monarchy, which existed until the end of World War I. Following its defeat in the war, Hungary lost significant territory, including Transylvania to Romania, Croatia, Vojvodina, and Bosnia and Herzegovina to the Kingdom of the Serbs, Croats, and Slovenes (later Yugoslavia), and Slovakia to Czechoslovakia. These losses reduced Hungary to a small, landlocked state.
In the aftermath of World War I, Hungary experienced political upheaval, with the Hungarian people demanding an end to the war and calling for a democratic republic. As a result, the Hungarian king appointed Mihály Károlyi to lead a liberal, reformist government that sued for peace and declared Hungary an independent, democratic republic in 1918. However, this initial democratic experiment was short-lived, and Hungary soon underwent a series of political transformations.
During the communist period, from 1947 to 1989, Hungary generally followed the Soviet lead in its foreign policy. It maintained close ties and treaties of friendship, cooperation, and mutual assistance with the Soviet Union and other Eastern Bloc countries. Despite this, Hungary's transition to a Western-style parliamentary democracy was one of the smoothest among the former Soviet bloc countries. By the late 1980s, activists, intellectuals, and young liberals intensified their calls for democratic reforms, leading to the adoption of a "democracy package" by the Parliament in 1988.
On 7 October 1989, Hungary's ruling Communist party, the Socialist Workers' Party, officially abandoned communism and embraced democratic socialism. This was followed by constitutional amendments that transformed Hungary into a multiparty democracy, ensuring free and fair elections. The country's official name was changed from the "Hungarian Republic" to "Hungary" in 2012 with the introduction of a new constitution.
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The Bosnian Condominium
The Austro-Hungarian Empire, also known as Austria-Hungary, was the third-most populous country in Europe and the fourth largest in the world. It was a dual monarchy, a real union between Cisleithania (the northern and western parts of the former Austrian Empire) and Transleithania (the Kingdom of Hungary). The two countries conducted unified policies in diplomacy and defence, with "common" ministries of foreign affairs and defence under the direct authority of the monarch.
The administration of the Bosnian Condominium advocated for a pluralist and multi-confessional Bosnian nation. Joint Imperial Minister of Finance and Vienna-based administrator of Bosnia, Béni Kállay, endorsed Bosnian nationalism in the form of "Bosniakhood". The aim was to inspire a sense of belonging to a powerful nation in the people of Bosnia, who were described as "speaking the Bosnian language and divided into three religions with equal rights". This policy attempted to insulate Bosnia and Herzegovina from its neighbours (Eastern Orthodox Serbia, Catholic Croatia, and the Muslim Ottoman Empire) and to marginalise the ideas of Serbian and Croatian nationhood among Bosnia's communities.
Kállay's policy was not widely accepted, even among Muslims, but it did represent the national aspirations of some Muslims in Bosnia and Herzegovina. Despite this, the policy was defeated in 1896 and 1899 when Bosnian Serbs and Muslims called for religious and educational autonomy. By 1905, nationalism had become an integral factor in Bosnian politics, with national political parties corresponding to the three groups dominating elections.
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The fall of the Iron Curtain
The Hungarian government's decision to remove the fence was part of a broader wave of revolutions sweeping across the region, signalling the end of communism in Hungary and beyond. On May 2, 1989, Hungarian border guards began removing sections of the 240-kilometre-long barrier, an event filmed by Western TV crews. This action had a domino effect, ultimately leading to the fall of the Berlin Wall and the reunification of Germany.
Prior to this, Hungary's border fence with Austria served as a critical component of the Iron Curtain. The fence was closely guarded by Hungarian security forces, who worked to prevent refugees from crossing into Austria. The fence's removal opened a passage for Hungarians to access goods and services in Austria, which were often unavailable or scarce in their own country. It also allowed over 900 East Germans vacationing in Hungary to rush the border, escaping to Austria and subsequently reaching West Germany.
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Frequently asked questions
The borders of Austria-Hungary, also known as the Austro-Hungarian Empire, changed over time. At its core was a dual monarchy, a union between Cisleithania (the northern and western parts of the former Austrian Empire) and Transleithania (the Kingdom of Hungary). The empire also included the Bosnian Condominium, and other territories such as Croatia, Fiume, Slavonia, and Central Croatia. After World War I, the Treaties of Saint-Germain-en-Laye and Trianon regulated the new borders of Austria and Hungary, reducing them to small, landlocked states.
The Ausgleich was an agreement reached between Emperor Franz Joseph and Hungary in 1867, which formed the basis of the state of Austria-Hungary. Hungary received full internal autonomy and agreed that the empire should be a single great state for purposes of war and foreign affairs.
The Ausgleich resulted in the creation of two separate sovereign countries under international law: the Empire of Austria and the Kingdom of Hungary. The exact borders of these countries were not clearly defined, with the empire referred to as "the kingdoms and lands represented in the Reichsrat" or "the other Imperial half."
Yes, the borders of Austria-Hungary evolved over time, with territories being added and removed from the empire. For example, in 1878, the Austro-Hungarian Monarchy occupied the Sandžak-Raška region until its withdrawal in 1908. Additionally, the empire's borders changed after World War I with the signing of the Treaties of Saint-Germain-en-Laye and Trianon.
Yes, in 1989, Hungary's border fence with Austria was removed, marking a significant event in the fall of the Iron Curtain. This open border allowed Hungarians to cross into Austria for goods and services, and many took advantage of this to purchase consumer goods that were unavailable or scarce in Hungary.



























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