Compromise of 1867

The Compromise of 1867 refers to the document signed in 1867 between Franz Joseph of Austria and a Hungarian delegation led by Ferenc Deak. The "Ausgleich" or "Kiegyezés" as it was called created the dual state known as Austria-Hungary.

The former revolutionaries — German and Magyar — became de facto "peoples of state", each ruling half of a twin country united only at the top through the King-Emperor and the common Ministries of Foreign Affairs and of War. Each half of the country had its own Prime Minister and parliament: in Hungary the Diet was restored to power. The special status of Transylvania and the Military Border ended: a new Nationalities Law was intended to preserve the rights of Romanians and Serbs, but was often violated in practice.