
Austria-Hungary, also known as the Austro-Hungarian Empire, was a multi-national constitutional monarchy in Central Europe that existed between 1867 and 1918. It was formed through the Compromise of 1867, which created a king of Hungary in addition to the Austrian emperor, with both being the same person. The Compromise also granted Hungary its own parliament and considerable autonomy. This union made sense for both Austria and Hungary as it allowed them to consolidate their power and expand their influence in the region, particularly in the Balkans, where nationalistic movements were gaining strength and demanding independence. Additionally, the union provided economic benefits, as Austria-Hungary became a significant manufacturer and exporter of electric appliances and constructed a vast railway network. However, the monarchy faced challenges due to its multi-ethnic composition, which ultimately contributed to its collapse during World War I.
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What You'll Learn

The Austro-Hungarian Compromise of 1867
The compromise restored the Kingdom of Hungary's territorial integrity and its old historic constitution. It granted Hungary full internal autonomy, with its own government and parliament, independent powers for regulating internal affairs, and a responsible ministry. In return, Hungary agreed that the empire would remain a single great state for war and foreign affairs purposes, maintaining its prestige abroad. This agreement reflected the belief that defence and foreign affairs were "common" to both Austria and Hungary, as per the Pragmatic Sanction of 1723.
The Austro-Hungarian Dual Monarchy had two capitals, Vienna and Budapest, and 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, and domestic policy issues were dealt with autonomously, resulting in different approaches. The Austrian half, or 'Cisleithania', was a multinational state, while in Hungary, the Magyars were the dominant nation, although it was also a multi-ethnic structure with various language groups.
The compromise was unpopular among ethnic Hungarian voters, 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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The rise of nationalism in the Balkans
During the 19th century, the Balkan nations began to break free from the declining Ottoman Empire, leading to the creation of nation-states on former Ottoman territories. This process was influenced by external factors and foreign military intervention. For example, Russia supported the Serbs and Bulgarians, while Britain, France, and Russia intervened on behalf of the Greeks. The influence of the French Revolution and Enlightenment ideals, as well as the cultural continuity of the Greek language, played a role in shaping Greek nationalism.
Language also had a unifying effect among Southern Slav people (Croats, Serbs, and Bosnians) before religious differences led to a nationalist slant. The concept of national identity, as promoted by intellectuals and the state through education, the military, and the media, contributed to the rise of nationalism in the region.
The growth of nationalism in the Balkans had significant consequences for the region's dynamics. It led to the emergence of independent states, such as Bulgaria and Serbia, and inflamed national hatreds, causing strife among the Balkan Allies. The rise of nationalism also influenced the policies and actions of external powers, such as Austria-Hungary, which sought to maintain control over the region through tactics like divide et impera.
The complex interplay between internal nationalist sentiments and external influences shaped the course of the Balkans in the 19th and early 20th centuries, leading to the formation of new nation-states and ongoing tensions in the region.
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The Hungarian parliament
The history of the Hungarian Parliament can be traced back to the medieval kingdom of Hungary in the 1290s and its successor states, Royal Hungary and the Habsburg kingdom of Hungary. The legislative body was originally known as the "Parlamentum" during the Middle Ages and later as the "Diet" in the Early Modern period. In the 17th and 18th centuries, the parliament consisted of about 500 people. The Diet of Hungary played a significant role in the country's history, particularly in the establishment of the Austro-Hungarian Compromise of 1867, which transformed the Habsburg domains into a real union between the Austrian Empire and the Kingdom of Hungary.
The Ausgleich, passed as a constitutional law by the Hungarian parliament in 1867, granted rights and freedoms to individuals, including freedom of belief and education, and established an impartial judiciary. This agreement between the emperor and Hungary gave the kingdom full internal autonomy and a responsible ministry while maintaining the empire as a single great state for war and foreign affairs. The Hungarian Parliament, as part of the "'common monarchy,' included the emperor, his court, the minister for foreign affairs, and the minister of war.
During the People's Republic of Hungary, the parliament building featured a red star atop its dome, which was removed in 1990 after the fall of communism. The Hungarian Republic was declared from the balcony facing Kossuth Lajos Square in 1989. Today, the Hungarian Parliament continues to serve as the legislative body of Hungary, with its members elected through a semi-proportional representation system.
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The Austrian and Hungarian governments
The Austrian government, prior to 1867, ruled the monarchy, which included Hungary. However, after the Compromise, the Austrian government became responsible only for the Austrian part of the empire, with a new government formed for the Hungarian portion. The Austrian government, led by Emperor Franz Joseph until his death in 1916, continued to have jurisdiction over common national security matters, including the Common Army, Navy, foreign policy, and the imperial household. The Austrian parliament, known as the Imperial Council or Reichsrat, had the power to confirm the Ausgleich without amending it, but the ministers were responsible to the emperor, not the majority of the Reichsrat.
The Hungarian government, on the other hand, gained full internal autonomy and a responsible ministry. While it agreed to be part of a single great state for war and foreign affairs, it maintained its own parliament, the Diet of Hungary or National Assembly, and its prime minister. Count Gyula Andrássy, as Hungary's Foreign Minister from 1871 to 1879, played a crucial role in shaping Hungary's foreign policy, opposing Russian expansion in the Balkans and blocking Serbian ambitions.
Both governments shared a common interest in industrialisation and economic development. The establishment of stock exchanges in Vienna and Budapest, as well as the transformation of the central bank into the Austro-Hungarian National Bank with principal offices in both capitals, reflected their economic collaboration. Additionally, Austria-Hungary became a significant manufacturer and exporter of electrical appliances and power generation equipment, second only to the United States and the German Empire.
The collapse of the Austro-Hungarian Empire in 1918, triggered by its defeat in World War I and internal revolutions, led to the dissolution of the unified Austrian and Hungarian governments. The empire's multi-ethnic composition and the rise of nationalist movements contributed to its disintegration, as various nationalities within the empire proclaimed their independence. The Treaty of Saint-Germain-en-Laye with Austria in 1919 and the Treaty of Trianon with Hungary in 1920 formally ended the empire, with both countries establishing diplomatic relations in 1921.
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The First World War
Russia's mobilisation in support of Serbia brought France into the conflict. Germany, an ally of Austria-Hungary, declared war on Russia on 1 August and France on 3 August. Germany's violation of Belgian neutrality and British fears of German domination in Europe led to Britain and its empire joining the war on 4 August. The Serbian Campaign was the first major military activity of the Austro-Hungarian forces in the war, and it continued throughout 1915 with the support of German and Bulgarian forces. The Eastern Front, along Austria-Hungary's border with Russia, was another significant site of conflict, with battles such as the Battle of Galicia.
Austria-Hungary's role in the war was largely passive, and it became increasingly dominated by Germany. The Austro-Hungarian Empire started to disintegrate as nationalist movements pressed for full independence. The Italian Front marked the start of rebellion for the numerous ethnicities within the Empire. By 1918, the economic situation had deteriorated, and the government had failed badly on the home front, with food shortages and the 1918 flu pandemic causing widespread misery.
The armistice between the Allies and Austria-Hungary was signed on 3 November 1918 and became effective the following day. Austria-Hungary was required to evacuate occupied territories and expel German forces. The Kingdom of Hungary and the First Austrian Republic were its successors, while the independence of several other states was recognised. The dissolution of Austria-Hungary marked the end of a powerful multinational constitutional monarchy in Central Europe.
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Frequently asked questions
The Austro-Hungarian Empire was a multi-national constitutional monarchy in Central Europe that existed between 1867 and 1918. The union was formed with the Austro-Hungarian Compromise of 1867, which created a king of Hungary in addition to the existing Austrian emperor (though they were the same person).
Austria, which had been expelled from the German Confederation following the Austro-Prussian War, found itself an opportunity to expand into the Balkans, which were in turmoil as nationalist movements gained strength.
Hungary received full internal autonomy and had its own parliament and considerable independence. The Compromise of 1868 also reinstated the full equality of all citizens and established the first minority rights in Europe.
Vienna became a lavish and oversized imperial capital lacking an empire to support it. After the union was dissolved, Austria was on shakier ground than Hungary, as it had never been a nation in any real sense and was united only by loyalty to the Habsburgs.
Hungary lost 72% of its territory, 64% of its population, and most of its natural resources. Hungarians also had to leave the Magyars of Transylvania to Romania and those north of the Danube to Czechoslovakia.

























