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1867 - Dual Monarchy

After the revolution, the emperor revoked Hungary's constitution and assumed absolute control. Franz Joseph divided the country into four distinct territories: Hungary, Transylvania, Croatia-Slavonia, and Vojvodina. German and Bohemian administrators managed the government, and German became the language of administration and higher education. The non-Magyar minorities of Hungary received little for their support of Austria during the turmoil. A Croat reportedly told a Hungarian: "We received as a reward what the Magyars got as a punishment."

Hungarian public opinion split over the country's relations with Austria. Some Hungarians held out hope for full separation from Austria; others wanted an accommodation with the Habsburgs, provided that they respected Hungary's constitution and laws. Ferencz Deak became the main advocate for accommodation. Deak upheld the legality of the April Laws and argued that their amendment required the Hungarian Diet's consent. He also held that the dethronement of the Habsburgs was invalid. As long as Austria ruled absolutely, Deak argued, Hungarians should do no more than passively resist illegal demands.

The first crack in Franz Joseph's neo-absolutist rule developed in 1859, when the forces of Sardinia and France defeated Austria at Solferno. The defeat convinced Franz Joseph that national and social opposition to his government was too strong to be managed by decree from Vienna. Gradually he recognized the necessity of concessions toward Hungary, and Austria and Hungary thus moved toward a compromise. In 1866 the Prussians defeated the Austrians, further underscoring the weakness of the Habsburg Empire. Negotiations between the emperor and the Hungarian leaders were intensified and finally resulted in the Compromise of 1867, which created the Dual Monarchy of Austra-Hungary, also known as the Austro-Hungarian Empire.

The Compromise of 1867, which created the Dual Monarchy, gave the Hungarian government more control of its domestic affairs than it had possessed at any time since the Battle of Mohacs. However, the new government faced severe economic problems and the growing restiveness of ethnic minorities. World War I led to the disintegration of Austria-Hungary, and in the aftermath of the war, a series of governments -- including a communist regime -- assumed power in Buda and Pest (in 1872 the cities of Buda and Pest united to become Budapest).

Once again a Habsburg emperor became king of Hungary, but the compromise strictly limited his power over the country's internal affairs, and the Hungarian government assumed control over its domestic affairs. The Hungarian government consisted of a prime minister and cabinet appointed by the emperor but responsible to a bicameral parliament elected by a narrow franchise. Joint Austro-Hungarian affairs were managed through "common" ministries of foreign affairs, defense, and finance. The respective ministers were responsible to delegations representing separate Austrian and Hungarian parliaments. Although the "common" ministry of defense administered the imperial and royal armies, the emperor acted as their commander in chief, and German remained the language of command in the military as a whole. The compromise designated that commercial and monetary policy, tariffs, the railroad, and indirect taxation were "common" concerns to be negotiated every ten years. The compromise also returned Transylvania, Vojvodina, and the military frontier to Hungary's jurisdiction.

At Franz Joseph's insistence, Hungary and Croatia reached a similar compromise in 1868, giving the Croats a special status in Hungary. The agreement granted the Croats autonomy over their internal affairs. The Croatian ban would now be nominated by the Hungarian prime minister and appointed by the king. Areas of "common" concern to Hungarians and Croats included finance, currency matters, commercial policy, the post office, and the railroad. Croatian became the official language of Croatia's government, and Croatian representatives discussing "common" affairs before the Hungarian diet were permitted to speak Croatian.

The Nationalities Law enacted in 1868 defined Hungary as a single nation comprising different nationalities whose members enjoyed equal rights in all areas except language. Although non-Hungarian languages could be used in local government, churches, and schools, Hungarian became the official language of the central government and universities. Many Hungarians thought the act too generous, while minority-group leaders rejected it as inadequate. Slovaks in northern Hungary, Romanians in Transylvania, and Serbs in Vojvodina all wanted more autonomy, and unrest followed the act's passage. The government took no further action concerning nationalities, and discontent fermented.

Anti-Semitism appeared in Hungary early in the century as a result of fear of economic competition. In 1840 a partial emancipation of the Jews allowed them to live anywhere except certain depressed mining cities. The Jewish Emancipation Act of 1868 gave Jews equality before the law and effectively eliminated all bars to their participation in the economy; nevertheless, informal barriers kept Jews from careers in politics and public life.




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