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===Austro-Hungarian Compromise of 1867=== {{Main|Austro-Hungarian Compromise of 1867}} [[File:Ferenc József koronázása Budán.jpg|thumb|250px|Franz Joseph's coronation as Apostolic King of Hungary. Painting by [[Edmund Tull]].]] The 1850s witnessed several failures of Austrian external policy: the [[Crimean War]], the dissolution of its alliance with Russia, and defeat in the [[Second Italian War of Independence]]. The setbacks continued in the 1860s with defeat in the [[Austro-Prussian War]] of 1866, which resulted in the [[Austro-Hungarian Compromise of 1867]].{{sfn|Murad|1968|p=169}} The Hungarian political leaders had two main goals during the negotiations. One was to 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 series of reform laws of the revolutionary parliament of 1848, which were based on the [[12 points of the Hungarian Revolutionaries of 1848|12 points]] that established modern civil and political rights, economic and societal reforms in Hungary.<ref name="Ferenc Szakály 1980 178" /> The Compromise partially re-established<ref>{{Cite book |last1=André Gerrits |url=https://books.google.com/books?id=UFY_iWZAj7kC&q=Ausgleich+%22hungarian+parliament%22+re-established&pg=PA42 |title=Political Democracy and Ethnic Diversity in Modern European History |last2=Dirk Jan Wolffram |publisher=[[Stanford University Press]] |year=2005 |isbn=978-0-8047-4976-3 |page=42}}</ref> the sovereignty of the Kingdom of Hungary, separate from, and no longer subject to the Austrian Empire. Instead, it was regarded as an equal partner with Austria. The compromise put an end to 18 years of absolutist rule and military dictatorship which had been introduced by Francis Joseph after the Hungarian Revolution of 1848. Franz Joseph was crowned King of Hungary on 8 June, and on 28 July he promulgated the laws that officially turned the Habsburg domains into the Dual Monarchy of [[Austria-Hungary]]. According to Emperor Franz Joseph, "There were three of us who made the agreement: [[Ferenc Deák (politician)|Deák]], [[Gyula Andrássy|Andrássy]] and myself."<ref>Kozuchowski, Adam. ''The Afterlife of Austria-Hungary: The Image of the Habsburg Monarchy in Interwar Europe''. Pitt Series in Russian and East European Studies. University of Pittsburgh Press (2013), {{ISBN|978-0-8229-7917-3}}. p. 83</ref> However, the role of Empress Elisabeth (Sisi) cannot be understated in facilitating this compromise. Fluent in Hungarian and deeply sympathetic to the Hungarian cause, Elisabeth fostered close relationships with Hungarian leaders, including Count Gyula Andrássy, and worked behind the scenes to persuade Francis Joseph to adopt a more conciliatory approach. Her influence helped build the trust necessary for successful negotiations, and her personal popularity in Hungary significantly bolstered the monarchy's legitimacy in the region.<ref>{{Cite book |last=Haslip |first=Joan |title=The Lonely Empress: Elizabeth of Austria |publisher=Weidenfeld & Nicolson History |year=2000 |isbn=978-1842120989 |edition=Paperback}}</ref> Political difficulties in Austria mounted continuously through the late 19th century and into the 20th century. However, Franz Joseph remained immensely respected; the emperor's patriarchal authority held the Empire together while the politicians squabbled among themselves.<ref name="Johnston">:[[Will Johnston|William M. Johnston]], ''The Austrian Mind: An Intellectual and Social History, 1848–1938'' (University of California Press, 1983), p. 38</ref>
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