SUMMARY

The Compromise of 1867: The Austro-Hungarian Compromise of 1867, also known as the
Ausgleich, marked a pivotal moment in Hungarian history. Following the defeat of Austria in the
Austro-Prussian War, the Habsburg monarchy was compelled to negotiate with Hungarian leaders to
stabilize the empire. The compromise resulted in the establishment of the Dual Monarchy, creating
the Austro-Hungarian Empire. Hungary gained significant autonomy, including its own parliament
and government, while still sharing a common monarch and certain joint institutions with Austria.
This arrangement lasted until the end of World War I and played a crucial role in Hungary's political
and economic development.

NOTES

The Austro-Hungarian Compromise of 1867, also known as the Ausgleich, was a pivotal agreement
between the Habsburg monarchy and Hungarian nationalists that redefined the structure of the
Habsburg Empire. The compromise was driven by several factors, including the empire's weakened
position after its defeat in the Austro-Prussian War of 1866 and the ongoing demands for greater
Hungarian autonomy. The defeat highlighted the need for internal reform to stabilize the empire and
address the growing nationalist movements within its borders. The key architects of the compromise
were Emperor Franz Joseph I and Hungarian statesman Ferenc Deák. Negotiations led to the
establishment of the Dual Monarchy, creating the Austro-Hungarian Empire. Under this arrangement,
Austria and Hungary became two distinct entities with their own parliaments and governments, linked
by a common monarch, foreign policy, military, and financial matters. The compromise granted
Hungary significant self-governance, allowing it to manage its internal affairs and legislate
independently on most domestic issues. The Ausgleich marked the end of the absolutist regime
imposed after the 1848 revolutions and ushered in a period of constitutionalism and relative political
stability. It also facilitated economic modernization and development, contributing to the
industrialization and modernization of both Austria and Hungary. However, the compromise did not
fully resolve the empire's nationalities problem. While it satisfied Hungarian aspirations to a
considerable extent, it left other ethnic groups, such as the Czechs, Slovaks, Romanians, and South
Slavs, feeling marginalized and underrepresented. This dissatisfaction continued to simmer,
contributing to ethnic tensions that would later play a significant role in the empire's dissolution after
World War I. Nonetheless, the Compromise of 1867 remains a landmark in Hungarian history,
symbolizing a major step towards national autonomy and the modernization of the state.