Composition of 1867

The Austro-Hungarian Compromise of 1867 (German: Ausgleich, Hungarian: Kiegyezés) 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. One was regain the traditional status (both legal and political) of the Hungarian state, which was lost after the Hungarian Revolution of 1848. The other was 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 Hungary.

According to Emperor Franz Joseph I of Austria, "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 by the rule of a single head of state, reigning as both Emperor of Austria and King of Hungary, and common 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 and was not part of the border for its whole course: Cis- and Trans- were used by custom, rather than geographical accuracy.

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