Editing History of Austria (section)

==== Dual Monarchy (1867–1918) ====
{{See also|Austria-Hungary|Cisleithania}}

===== Conciliation =====
[[File:Winterhalter Elisabeth 2.jpg|thumb|[[Empress Elisabeth of Austria|Empress Elisabeth]], known as "Sisi"|308x308px]]
While Austria was reeling from the effects of war, the Hungarians increased the pressure for their demands. Andrássy was regularly in Vienna, as was [[Ferenc Deák (politician)|Ferenc Deák]] and the Hungarian position was backed by constitutionalists and liberals. While anti-Hungarian sentiments ran high at the court, the Emperor's position was becoming increasingly untenable, with the Prussian army now at [[Pressburg]] (now Bratislava), and Vienna crammed with exiles, while hope for French intervention proved to be fruitless. The Hungarians recruited [[Empress Elisabeth of Austria|Empress Elisabeth]] who became a strong advocate for their cause. [[György Klapka]] had organised a legion fighting for the Prussians, which Bismarck had supported, that entered Hungary and agitated for Hungarian independence.
[[File:Portrait of Franz Joseph I by Franz Xaver Winterhalter.jpg|thumb|left|Emperor [[Franz Joseph&nbsp;I.]]|331x331px]] 
However the needs of the other provinces had to be considered before entering into any form of Hungarian dualism which would give Hungary special privileges, and started to fan the flames of Czech nationalism, since Slavic interests were likely to be submerged. People started to talk about the events of 1848 again. By February 1867 [[Count Richard Belcredi|Count Belcredi]] resigned as Minister President over his concerns about Slavic interests, and was succeeded by foreign minister [[Count Friedrich Ferdinand von Beust|Ferdinand Beust]], who promptly pursued the Hungarian option which had become a reality by the end of the month.

===== ''Ausgleich'' (Compromise) 1867 =====
[[Austria-Hungary]] was created through the mechanism of the [[Austro-Hungarian Compromise of 1867]]. Thus the Hungarians finally achieved much of their aims. The western half of the realm known as ([[Cisleithania]]) and the eastern Hungarian ([[Transleithania]]), that is the realms lying on each side of the [[Leitha]] [[tributary]] of the [[Danube]] river, now became two realms with different interior policy - there was no common citizenship and dual-citizenship was banned either -, but with a common ruler and a common foreign and military policy. The empire now had two capitals, two cabinets and two parliaments. Only three cabinet positions served both halves of the monarchy, war, foreign affairs and finance (when both sectors were involved). Costs were assigned 70:30 to Cisleithania, however the Hungarians represented a single nationality while Cisleithania included all the other kingdoms and provinces. Andrássy was appointed as the first Minister President of the new Hungary on 17 February. Feelings ran high in the provinces, and the Diets in Moravia and Bohemia were shut down in March.

Emperor Franz Joseph made a speech from the throne in May to the ''[[Reichsrat (Austria)|Reichsrat]]'' (Imperial Council) asking for retroactive ratification and promising further constitutional reforms and increased autonomy to the provinces. This was a major retreat from absolutism. On 8 June, the Emperor and Empress were crowned [[King of Hungary|King and Queen of Hungary]] in a ceremony whose pomp and splendour seemed out of keeping with Austria's recent military and political humiliation and the extent of financial reparations. As part of the celebrations the emperor announced further concessions that aggravated relationships between Hungary and the rest of the monarchy. An amnesty was declared for all political offences since 1848 (including [[György Klapka|Klapka]] and [[Lajos Kossuth|Kossuth]]) and reversal of the confiscation of estates. In addition the coronation Gift was directed to the families and veterans of the revolutionary ''Honvéd''s, which was revived as the [[Royal Hungarian Honvéd]].

In return for the Liberals support of the ''Ausgleich'', concessions were made to parliamentary prerogatives in the new constitutional law. The law of 21 December 1867, although frequently amended, was the foundation of Austrian governance for the remaining 50 years of the empire, and was largely based on the February Patent, the Imperial Council and included a bill of rights. Ultimately the political balance of the dual monarchy represented a compromise between authoritarianism and parliamentarianism ''([[Rechtsstaat]])'' (Hacohen 2002). Like most compromises it was rejected by extremists on both sides, including Kossuth.

===== Austria-Hungary, 1867–1914 =====
[[File:Imperial Coat of Arms of the Empire of Austria (1815).svg|thumb|Small coat of arms of the [[Austria-Hungary|Austro-Hungarian Empire]] 1867–1915, with the Habsburg [[Order of the Golden Fleece]] superimposed on the Austrian Doubleheaded Eagle, and crested by the Crown of [[Rudolf II, Holy Roman Emperor|Rudolf II]]]]1873 marked the [[Silver Jubilee]] of Franz Joseph, and provided not only an occasion for celebration but also one of reflection on the progress of the monarchy since 1848. [[Vienna]] had grown from a population of 500,000 to over a million, the walls and fortifications had been demolished and the ''Ringstrasse'' constructed with many magnificent new buildings along it. The Danube was being regulated to reduce the risk of flooding, a new aqueduct constructed to bring fresh water into the city, and many new bridges, schools, hospitals, churches and a new university built.

'''Foreign policy'''<br/>
{{See also|List of foreign ministers of Austria-Hungary}}
What was supposed to be a temporary emergency measure was to last for half a century. Austria succeeded in staying neutral during the [[Franco Prussian War]] of 1870–71 despite those who saw an opportunity for revenge on Prussia for the events of 1866. However Austria's allies among the South German States were now allied with Prussia, and it was unlikely that Austria's military capacity had significantly improved in the meantime. Any residual doubts were rapidly dispelled by the speed of the Prussian advance and the subsequent overthrow of the [[Second Empire (France)|Second Empire]].

In November 1871 Austria made a radical change in foreign policy. [[Ferdinand Beust]], the First Prime Minister (to 1867), Chancellor and Foreign Minister (1866–1871) of the Dual Monarchy, was dismissed. Beust was an advocate of ''revanche'' against Prussia, but was succeeded by the Hungarian Prime Minister, the liberal [[Gyula Andrássy]] as [[List of foreign ministers of Austria-Hungary|Foreign Minister]] (1871–1879), although both opposed the federalist policies of Prime Minister [[Karl Hohenwart]] (1871) while [[Prince Adolf of Auersperg]] became the new Prime Minister (1871–1879). Andrássy 's appointment caused concern among the conservative [[Kamarilla|Court Party]], but he worked hard to restore relationships between Berlin and Vienna, culminating in the [[Dual Alliance, 1879|Dual Alliance]] of 1879.

In 1878, [[Austro-Hungarian occupation of Bosnia and Herzegovina|Austria-Hungary occupied Bosnia and Herzegovina]], which had been cut off from the rest of the [[Ottoman Empire]] by the creation of new states in the [[Balkans]] following the [[Russo-Turkish War of 1877–78]] and the resulting [[Congress of Berlin]] (June–July 1878). The territory was ceded to Austria-Hungary, and Andrássy prepared to occupy it. This led to a further deterioration of relations with [[Russia]] and was to lead to tragic consequences in the next century. Austrian troops encountered stiff resistance and suffered significant casualties. The occupation created controversy both within and without the empire and led to Andrássy's resignation in 1879. This territory was finally [[Austro-Hungarian annexation of Bosnia and Herzegovina|annexed in 1908]] and put under joint rule by the governments of both Austria and Hungary.
[[File:Austrian Germans in western Austro-Hungarian Empire.gif|thumb|right|250px|Map showing [[Austrian German]]–inhabited areas (in rose) in western Austro-Hungarian Empire in 1911]]

The departure of the Liberal Government and of Andrássy from the Foreign Office (''k. u. k. Ministerium des Äußern'') marked a sharp shift in Austria-Hungary's foreign policy, particularly in relation to Russia, [[Count Gustav Kálnoky]] (1881–1895) Andrássy's Conservative replacement pursuing a new rapprochement.

'''Economy'''

The second half of the 19th century saw a lot of construction, expansion of cities and railway lines, and development of industry. During the earlier part of this period, known as ''[[Gründerzeit]]'', Austria became an industrialized country, even though the Alpine regions remained characterized by agriculture. Austria was able to celebrate its newfound grandeur in the [[Weltausstellung 1873 Wien|Vienna World Exhibition of 1873]], attended by all the crowned heads of Europe, and beyond. This period of relative prosperity was followed by the [[Panic of 1873|1873 Stock market crash]].