Austro-Hungarian Compromise of 1867

The Austro-Hungarian Compromise of 1867 was an agreement that restructured the Austrian Empire into a dual monarchy, creating two separate entities: the Austro-Hungarian Empire. This compromise gave Hungary more autonomy and self-governance while maintaining shared leadership under Emperor Franz Joseph I. Each part had its own parliament and government but coordinated on military and foreign affairs. This arrangement aimed to address the rising nationalist sentiments within the empire, balancing the demands of various ethnic groups while strengthening the central authority of the empire. It marked an important step in managing diversity within a complex political landscape.