Austro-Hungarian Compromise of 1867

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The Austro-Hungarian Compromise of 1867 (German: Ausgleich, Hungarian: Kiegyezés) established the dual monarchy of Austria-Hungary, which was a military and diplomatic alliance of two sovereign states.^[1] The Compromise only partially re-established^[2] the former pre-1848 sovereignty and status of the Kingdom of Hungary, being separate from, and no longer subject to, the Austrian Empire. The compromise put an end to the 18-year-long military dictatorship and absolutist rule over Hungary which Emperor Franz Joseph had instituted after the Hungarian Revolution of 1848. The territorial integrity of the Kingdom of Hungary was restored. The agreement also restored the old historic constitution of the Kingdom of Hungary.^[3]

Hungarian political leaders had two main goals during the negotiations. One was to regain the traditional status (both legal and political) of the Hungarian state, which had been lost after the Hungarian Revolution of 1848. The other was to restore the series of reform laws (the so-called April Laws) of the revolutionary parliament of 1848, which were based on the 12 points that established modern civil and political rights and economic and societal reforms in Hungary.^[4] The April Laws of the Hungarian revolutionary parliament (with the exception of the laws based on the 9th and 10th points) were restored by Franz Joseph.

Under the Compromise, the lands of the House of Habsburg were reorganized as a real union between the Austrian Empire and the Kingdom of Hungary, headed by a single monarch who reigned as Emperor of Austria in the Austrian half of the empire, and as King of Hungary in the Kingdom of Hungary. The Cisleithanian (Austrian) and Transleithanian (Hungarian) states were governed by separate parliaments and prime ministers. The two countries 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.

The relationship of Hungary to Austria before the 1848 revolution had been personal union, whereas after the compromise of 1867 its status was reduced to partnership in a real union.^[5] Thus Hungarian society widely considered the compromise as a betrayal of the vital Hungarian interests and the achievements of the reforms of 1848. The compromise remained bitterly unpopular among ethnic Hungarian voters:^[6] ethnic Hungarians did not generally support the ruling Liberal party in Hungarian parliamentary elections. Therefore, the political maintenance of the Austro-Hungarian Compromise, and thus Austria-Hungary itself, was mostly a result of the popularity of the pro-compromise ruling Liberal Party among ethnic minority voters in the Kingdom of Hungary.

According to Emperor Franz Joseph I of Austria, "There were three of us who made the agreement: Deák, Andrássy and myself."^[7]