The antecedents and content of the Compromise

I. Antecedents
 August 1849: the Habsburgs put down the Hungarian War of
Independence with the help of the Russian Tsar
 after the victory they introduced absolutistic policy in Hungary and
started a revenge taking policy under the leadership of Haynau
 however, the War of Independence made Vienna realize that
reorganisation was needed centralization 1. power centralized in the
 1850: Haynau was dismissed  Bach era Habsburg Empire, but no
 aim: - Germanization
constitution
2. national and civil rights not
- administrative reforms with respected
suppressive acts against Hungary 3. economic modernization
- no special rights 4. neoabsolutistic system
1. separated Transylvania,
Croatia, the Serbian Voivodship
and the Banate of Temes from
Hungary
2. autonomy of the countries
abolished
3. „Bach hussars”: imperial
police set up in Hungary
4. German as official language
5. strict censorship

 Hungarian population hated the new system

- expressed their opinion in two ways:
1. secret conspiracies  but always revealed by the police
2. passive ways  mainly nobility, e.g. refused to take a post in
administration, did not pay taxes, did not appear in public places
 Hungarians wanted to base the Compromise on the 1848 laws 
Habsburgs did not accept
 1859: Austria had conflicts with other European countries
- defeat at Solferino  financial, political problems
 Francis Joseph dismissed Bach and cooperated with the conservatives
 1860: October Diploma: restored the conditions before 1848
 1861: February Patent: put the Parliament to Vienna
 Hun. politicians divided into two:
1. Petition Party (Ferenc Deák) 2. Declaration Party (László Teleki)
  Habsburg answer: returned to absolutism, Schmerling
 from 1864: clear that Bismarck wanted to unify the German states without
Austria  Habsburgs did not want to lose Hungary  ready to start
discussions
 1865: Deák introduced the Eastern Article
1. outlined his idea of the
compromise bw. Austria and
Hungary
2. F. J. had to be accepted as ruler
3. Hungary should give up its defence
policy
4. aim: independence within the
Empire

 the article was discussed by the imperial politicians and the majority
supported Deák’s ideas
 Schmerling was dismissed
 Francis Joseph called the Hungarian Parliament to a session in Dec 1865

II. The compromise

1867: it was accepted by Francis Joseph
 appointed Gyula Andrássy as prime minister
 F.J. crowned asking of Hungary
 new state name: Austro-Hungarian Monarchy
 state form: dual constitutional monarchy  two centres: Bp. and Vienna
 F.J. kept his titles of emperor and Hungarian king (right to appoint
ministers)
 2 states unified by:
- common ruler  Personal Union
- common affairs  foreign & military ministry, finances
 the dual monarchy had its own army
- decisions on military affairs, foreign policy and financial affairs made
together by the Austrian and Hungarian governments together
- in Vienna, checked by delegations from both countries
- 60-60 member delegations to control the common policies
 Hungary and Transylvania combined again
 Hungary had its own responsible government
III. Economic compromise

 also signed in 1867

 had to be renewed every 10 years
 aims: 1. custom union bw. the 2 countries
- common tariffs
- common trading policy
2. same currency: Corona
3. unified measurement system and
services
4. free flow of capital and labour
force

IV. Croatian-Hungarian compromise

 1868
 Croatia became an independent part with its own government and leader
(Bán)
 not unified, could send representatives to the Hungarian Parliament
V. Opinions on the Compromise
 has been debated since 1867
 Kossuth: wrote a letter in which he described the Compromise saying it
would cause the death of the Hungarian nation bc. it didn’t set up a federal
state, but it made the life of a dying empire longer: Cassandra letter
 20th century historians: fair compromise with both negative and positive
Negative Positive
- made by the 2 strongest nations - transport, religious life, industry,
of the Habsburg Empire but education and culture started
they weren’t the majority developing quickly
- army was in the hand of the
ruler, could force Hungary to
accept his decisions sides
- both sides dissatisfied

 nowadays: historians consider the Compromise reasonable, although

Hungary had to give up its independence
- basic Hungarian demands were met
- territorial integrity recognized and met
- protection against Germany and Russia