Compromise of 1867

The Compromise of 1867, also known as the Austro-Hungarian Compromise, was an agreement that established the dual monarchy of Austria-Hungary. Following military defeats and growing nationalist sentiments, it created two distinct entities—Austria and Hungary—each with its own parliament and significant autonomy, while remaining under the rule of the Habsburg monarchy. This arrangement aimed to stabilize the empire by addressing the demands of various ethnic groups and balancing power within the multi-national state. However, it ultimately sowed the seeds for future tensions and conflicts in the region.