Compromise, Austro-Hungarian (Ausgleich), agreement signed March 15, 1867 on the political relationship between Austria and Hungary; replaced the Austrian Empire with what was called the Austro-Hungarian Dual Monarchy (until 1918). After a constitutive Hungarian ministry had been formed (February 1867), Count F. Beust conducted negotiations for Austria with the Hungarian representatives Count J. Andrássy the Elder and F. von Deák. Foreign, military and financial affairs, and from 1878 the administration of Bosnia and Herzegovina were placed under the authority of shared ministries (pragmatic affairs). The rates of contribution to common expenses were originally 70 % for Austria, 30 % for Hungary, and from 1907 they were 63.4 and 36.6 %, respectively. Common national debt, trade and customs policy, central banks and the issuing of currency as well as the railroads were handled separately (dualistic affairs).
The shared authorities and affairs of the Hungarian and Austrian parts of the monarchy were referred to as "kaiserlich und koeniglich" (imperial and royal, abbreviated "k. u. k."), those specific to the Austrian part were "kaiserlich-koeniglich" (imperial-royal, abbreviated "k. k."), which corresponded to the term "koeniglich ungarisch" (royal Hungarian, abbreviated "k. ung.") in Hungary. The legislative body for "k. u. k." affairs comprised delegations of 60 members each, elected for 1 year only and convened alternately in Vienna and Budapest. The Compromise did not in any way effect the intended solution to the Nationalitaety Question and the protection of the dual monarchy's integrity. The Slavs in particular, as well as the Hungarian Independence Party, were dissatisfied with this solution.
Further reading#Der oesterreichisch-ungarische Ausgleich von 1867, published by Forschungsinstitut fuer den Donauraum, 1967; Der oesterreichisch-ungarische Ausgleich von 1867, book series by the Suedostdeutsche Histor. Kommission 20, 1968; Historisches Geschehen im Spiegel der Gegenwart, Oesterreich-Ungarn 1867-1967, Institut fuer Oesterr.-Kunde, 1970.