The Hapsburgs, however, could not hold back the changes that were engulfing Europe. By the 1840s, factories were springing up. Soon, the Hapsburgs found themselves facing the problems of industrial life that had long been familiar in Britain—the growth of cities, worker discontent, and the stirrings of socialism.

Nationalist Demands

Equally disturbing to the old order were the urgent demands of nationalists. The Hapsburgs presided over a multinational empire. Of its 50 million people at mid-century, fewer than a quarter were German-speaking Austrians. Almost half belonged to different Slavic groups, including Czechs, Slovaks, Poles, Ukrainians, Serbs, Croats, and Slovenes. Often, rival groups shared the same region. The empire also included large numbers of Hungarians and Italians. The Hapsburgs ignored nationalist demands as long as they could. When nationalist revolts broke out in 1848, the government crushed them.

Reforms of Francis Joseph

Amid the turmoil, 18-year-old Francis Joseph inherited the Hapsburg throne. He would rule until 1916, presiding over the empire during its fading days.

Francis Joseph inherited the Hapsburg throne while still a teenager. He made some limited reforms, but not enough to save his empire.

An early challenge came when Austria suffered its humiliating defeat at the hands of France and Sardinia in 1859. Francis Joseph realized he needed to strengthen the empire at home. Accordingly, he made some limited reforms. He granted a new constitution that set up a legislature. This body, however, was dominated by German-speaking Austrians.

The reforms thus satisfied none of the other national groups that populated the empire. The Hungarians, especially, were determined to settle for nothing less than self-government.

The Dual Monarchy

Austria's disastrous defeat in the 1866 war with Prussia brought renewed pressure for change from Hungarians within the empire. One year later, Ferenc Deák (DEH ahk), a moderate Hungarian leader, helped work out a compromise that created a new political power known as the Dual Monarchy of Austria-Hungary.

The Creation of Austria-Hungary

Under the agreement, Austria and Hungary were separate states. Each had its own constitution and parliament. Francis Joseph ruled both, as emperor of Austria and king of Hungary. The two states also shared ministries of finance, defense, and foreign affairs, but were independent of each other in all other areas.

Nationalist Unrest Increases

Although Hungarians welcomed the compromise, other subject peoples resented it. Restlessness increased among various Slavic groups, especially the Czechs in Bohemia.

Some nationalist leaders called on Slavs to unite, insisting that “only through liberty, equality, and fraternal solidarity” could Slavic peoples fulfill their “great mission in the history of mankind.” By the early 1900s, nationalist unrest often left the government paralyzed in the face of pressing political and social problems.

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