- (1867)The diplomatic compromise that converted the Austrian Empire into the Dual Monarchy of Austria-Hungary. Traditionally, the Hungarian parts of the Habsburg monarchy enjoyed a high degree of autonomy, but in the aftermath of their defeat in the war of independence, 1849, Hungarians saw many of their privileges being revoked. Because of the weakened international position of the Habsburg monarchy since 1859, constitutional reform and a new legal status of Hungary had to be negotiated. In February 1867, the Ausgleich between the Hungarian opposition and the Austrian Emperor Francis Joseph I transformed the monarchy. According to this agreement, the kingdom of Hungary would have its own government and parliament in Budapest and accept Francis Joseph and his heirs as kings. The agreement was approved by the Hungarian diet and laid down in Law XII of 1867. The monarch as King of Hungary and Emperor of Austria; the common ministries of foreign affairs, war, and finance; and the regular meetings of delegations from both parliaments formed institutional bonds between Austria and Hungary. There was also a common Austro-Hungarian army and navy. The customs union and a sharing of accounts had to be revised every 10 years.See also <
>.FURTHER READING:Kann, Robert A. A History of the Habsburg Empire, 1526-1918. Berkeley: University of California Press, 1974;Macartney, C. A. The Habsburg Empire, 1790-1918. London: Weidenfeld and Nicolson, 1971.GUENTHER KRONENBITTER
Encyclopedia of the Age of Imperialism, 1800–1914. 2014.