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Austro-Hungarian Compromise of 1867

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, 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 her 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]

The old historic constitution of Hungary was restored.

The Hungarian parliament was re-established (which had been the supreme legislative power in Hungary since the 12th century), as it was before 1849. Each part of the Monarchy had its own government, headed by its own . The "dual monarchy" consisted of the Emperor-King, and the common ministers of foreign affairs, defence, and a finance ministry only for expenditures of the Common Army, navy and diplomatic service.

prime minister

The Hungarian legal system and Hungarian laws were restored in the territory of the Kingdom of Hungary. During the negotiations of the compromise, even the April Laws of the Hungarian revolutionary parliament (with the exception of the laws based on the 9th and 10th points) were also accepted by the monarch.

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The traditionally independent and separate judicial system of Hungary was restored.

Austria–Hungary, as a common entity, had no jurisdiction and legislative power, which was shaped by the fact that there was no common parliament. The common diplomatic and military affairs were managed by delegations from the Imperial Council and the Hungarian parliament. The delegations had 60 members from the Imperial Council, and 60 members from the Hungarian parliament, and the ratios of various political fractions exactly and proportionally mirrored their own political parties of their parliaments. The members of the delegations from the two parliaments had no right to give speeches, to debate, or introduce new ideas during the meetings; thus they were nothing more than the extended arms of their own parliaments. The only function of the delegates was to cast their votes according to the previously made decisions of their political factions in the Austrian and the Hungarian parliaments. All common decisions had to be ratified by the Austrian parliament to be valid on Austrian territory, and by the Hungarian parliament to be valid on the territory of Kingdom of Hungary. The Austrian and Hungarian delegations hold their joint meeting in Vienna in every odd year, and in Pest in every even year.

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With the exception of the territory of , Austria and Hungary did not form a common sovereign territory in international law (i.e. Kingdom of Hungary and Empire of Austria were different countries). Thus regarding to territorial changes during peace treaties, the Empire of Austria and Kingdom of Hungary had to act independently as independent countries: a delegate from the Austrian parliament had right to sign peace treaties related to territorial changes of the Austrian Empire, and respectively, a delegate from the Hungarian parliament had right to sign peace treaties regarding to territorial changes of the Kingdom of Hungary.[55] See: Treaty of Saint-Germain and Treaty of Trianon

Bosnian Condominium

A common Ministry of Foreign Affairs was created, responsible for diplomacy and foreign policy. Further information:

Foreign Ministry of Austria-Hungary

There was no common citizenship in Austria–Hungary: one was either an Austrian citizen or a Hungarian citizen, never both. Austria–Hungary used two separate passports: the Austrian passport and the Hungarian one. There was no common passport.[57]

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A common finance ministry was founded, only for the expenditures of the Common Army, the navy and the diplomatic service and for the issue of banknotes. It was headed by the Common Finance Minister. All other expenditures belonged to the Austrian Finance Ministry in the Austrian Empire and the Hungarian Finance Ministry in the Kingdom of Hungary. The Austrian finance minister was subordinated only to the Minister-President of Austria in the Austrian Empire, and the Hungarian Finance Minister was subordinated only to the Prime Minister of Hungary.

The monetary and economic terms of the Compromise and the customs union had to be renegotiated every ten years.

Despite Austria and Hungary sharing a common currency, they were fiscally sovereign and independent entities.

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The international commercial treaties and trade agreements were conducted independently by Austria and Hungary, as independent nations. The Common Finance Ministry had no competence in the international commercial treaties and trade agreements of the Austrian state or the Hungarian state.

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The was restored, and the Imperial-Royal Landwehr was created, but both states had to continue to finance the Austro-Hungarian Common Army, much larger than both. A common Austro-Hungarian War Ministry was formed immediately for the large Common Army, but it had no right to command directly the smaller Austrian Landwehr and the Hungarian Honvéd armies, which were respectively placed under the direct control of the separate Austrian and Hungarian Ministries of Defence. The Austrian and Hungarian Ministers of Defence were not placed under the command and jurisdiction of the Common War Ministry; they were subordinated only to their own prime ministers and the respective parliaments in Vienna and Budapest.[60] The Hungarian Honvéd army could join the imperial army only with the explicit authorization of the Hungarian government.[61] Further information: Imperial and Royal Ministry of War

Royal Hungarian Honvéd

Hungary took on a large part of the towering Austrian state debt.

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The Emperor-King held all authority over the structure, organization, and administration of the three armies. He appointed the senior officials, had the right to declare war, and was the commander-in-chief of the army.

The Emperor-King had the right to declare a state of emergency.

The Emperor-King had the right of preliminary royal assent to every bill the Cabinet Council wanted to report to the National Assembly. He had the right to veto any law passed by the National Assemblies.

The Emperor-King had the right to dissolve the National Assemblies and of the declaration of new parliamentary elections.

The Emperor-King had the right to appoint and dismiss the members of the Cabinet Councils.

Under the Compromise:


The power of the monarch significantly increased in a comparison with the pre-1848 status of Hungary. This meant a great reduction in Hungarian sovereignty and autonomy, even in comparison with the pre-1848 status quo.

Continuing pressures[edit]

The dominance of ethnic minority elected Liberal Party in the Hungarian Parliament[edit]

The Austro-Hungarian compromise and its supporting liberal parliamentary parties remained bitterly unpopular among the ethnic Hungarian voters, and the continuous successes of these pro-compromise Liberal Party in the Hungarian parliamentary elections caused long lasting frustration for Hungarians. The ethnic minorities had the key role in the political maintenance of the compromise in Hungary, because they were able to vote the pro-compromise liberal parties into the position of the majority/ruling parties of the Hungarian parliament. The pro-compromise liberal parties were the most popular among ethnic minority voters, however i.e. the Slovak, Serb and Romanian minority parties remained unpopular among their own ethnic minority voters. The coalitions of Hungarian nationalist parties – which were supported by the overwhelming majority of ethnic Hungarian voters – always remained in the opposition, with the exception of the 1906–1910 period, where the Hungarian-supported nationalist parties were able to form a government.[63]

Ethnic minorities[edit]

Before the World War I, only three European countries declared ethnic minority rights, and enacted minority-protecting laws: the first was Hungary (1849 and 1868), the second was Austria (1867), and the third was Belgium (1898). In contrast, the legal systems of other pre-WW1 era European countries did not allow the use of European minority languages in primary schools, in cultural institutions, in offices of public administration and at the legal courts.[64]


The resulting system was maintained until the dissolution of the dual monarchy after World War I. The favoritism shown to the Magyars, the second largest ethnic group in the dual monarchy after the Germans, caused discontent on the part of other ethnic groups like the Slovaks and Romanians.[65] Although a "Nationalities Law" was enacted to preserve the rights of ethnic minorities, the two parliaments took very different approaches to this issue.


The basic problem in the later years was that the Compromise with Hungary only encouraged the appetites of non-Hungarian minorities in Hungary that were historically within the boundaries of the Hungarian Kingdom. The majority of Hungarians felt they had accepted the Compromise only under coercion. The Hungarian monarchs were always crowned as King of Hungary, due to the Hungarian coronation oath they had to agree to uphold the old constitutional arrangements of the country and preserve the territorial integrity of the Hungarian realm. This coronation oath was obligatory for the Hungarian monarchs during the coronation process since the Golden Bull of 1222.[66] The Hungarians, who were regarded as equal after the Compromise, only partially acquiesced to granting "their" minorities recognition and local autonomy.


In the Kingdom of Hungary, several ethnic minorities faced increased pressures of Magyarization.[67] Further, the renegotiation that occurred every ten years often led to constitutional crises. Ultimately, although the Compromise hoped to fix the problems faced by a multi-national state while maintaining the benefits of a large state, the new system still faced the same internal pressures as the old. To what extent the dual monarchy stabilized the country in the face of national awakenings and to what extent it alleviated or aggravated the situation is still debated today.


In a letter on 1 February 1913, to Foreign Minister Berchtold, Archduke Franz Ferdinand said that "irredentism in our country ... will cease immediately if our Slavs are given a comfortable, fair and good life" instead of being trampled on (as they were being trampled on by the Hungarians).[68]

Influence in Ireland[edit]

As early as the mid-1880s, Lord Salisbury, leader of the British Conservative Party, had contemplated using the 1867 Austro-Hungarian example as a model for a reformed relationship between Britain and Ireland.[69] In 1904 Arthur Griffith published the highly influential book The Resurrection of Hungary: A Parallel for Ireland, setting out a detailed proposal for an Anglo-Irish dual monarchy similar to the Austro-Hungarian one.[70] This dual monarchy model was advocated by Griffith's Sinn Féin party in its early years of existence and had a considerable influence on the development of Irish Nationalism − though after the Easter Rising and subsequent October 1917 Ardfheis, it was dropped in favour of Irish Republicanism.

Fundamental Articles of 1871

Cornwall, Mark (2002), Last Years of Austria-Hungary: A Multi-National Experiment in Early Twentieth-Century Europe (2nd ed.), .

University of Exeter Press

Seton-Watson, R. W. (1925), "Transylvania since 1867", The Slavonic Review, vol. 4, no. 10, Modern Humanities Research Association, pp. 101–23,  4201928.

JSTOR

Seton-Watson, R. W. (1939), "The Austro-Hungarian Ausgleich of 1867", The Slavonic and East European Review, vol. 19, no. 19.53/54, Modern Humanities Research Association, pp. 123–40,  4203588.

JSTOR

Sowards, Steven W. (23 April 2004), , Michigan State University, retrieved 19 March 2009.

Nationalism in Hungary, 1848–1867. Twenty Five Lectures on Modern Balkan History

(1994). A History of Hungary. Indiana University Press. ISBN 025320867X.

Sugar, Peter F.

Taylor, A. J. P. (1952), The Habsburg Monarchy, 1815 – 1918: A history of the Austrian Empire and Austria-Hungary., New York: .

Macmillan

Tihany, Leslie C. (1969), "The Austro-Hungarian Compromise, 1867–1918: A Half Century of Diagnosis; Fifty Years of Post-Mortem", Central European History, vol. 2, no. 2, Cambridge University Press, Central European History Society, pp. 114–38, :10.1017/s0008938900000169, JSTOR 4545523, S2CID 145522363.

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Chronology of the Compromise

The Dual Monarchy in Hungary

Nationalism in Hungary