Austro-Hungarian Compromise

The Austro-Hungarian Compromise of 1867 (German: Ausgleich, Hungarian: Kiegyezés), or Composition of 1867, established the dual monarchy of Austria-Hungary. The Compromise partially re-established the sovereignty of the Kingdom of Hungary, separate from, and no longer subject to, the Austrian Empire.

Hungarian political leaders had two main goals during the negotiations. First, as far as possible to regain the traditional status (both legal and political) of the Hungarian state, which was lost after the revolution of 1848; and second, to restore the reform 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 Kingdom of Hungary.

According to Emperor Franz Joseph I of Austria, only three people contributed to the compromise: "There were three of us who made the agreement: Deák, Andrássy and myself."

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. The Cisleithanian (Austrian) and Transleithanian (Hungarian) regions were governed by separate parliaments and prime ministers. Unity was maintained through the rule of a single head of state, reigning as both Emperor of Austria and King of Hungary, and common monarchy-wide ministries of foreign affairs, defence and finance under his direct authority. The armed forces were combined with the Emperor-King as commander-in-chief.

The names conventionally used for the two realms were derived from the river Leitha, or Lajta, a tributary of the Danube and the traditional border between Austrian and Magyar lands. The Leitha did not, however, form the entire border, nor was its whole course part of the border: the Cis- and Trans- usage was by force of custom rather than geographical accuracy.

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