A Hungarian Diet convoked in 1861 is dissolved after a few weeks, because the gap between the Hungarians' views and those of Franz Joseph and his centralist ministry in Vienna are still too wide to be bridged.

Absolutism is reimposed, but the pressure of international and internal economic difficulties gradually drives Francis Joseph to further concessions.

Croatian becomes the official language of Croatia's government, and Croatian representatives discussing "common" affairs before the Hungarian Diet are permitted to speak Croatian.

A Habsburg emperor becomes king of Hungary once again, but the compromise strictly limits his power over the country's internal affairs, and the Hungarian government assumes control over its domestic affairs.

The Hungarian government consists of a prime minister and cabinet appointed by the emperor but responsible to a bicameral parliament elected by a narrow franchise.

Joint Austro-Hungarian affairs are managed through "common" ministries of foreign affairs, defense, and finance.

The respective ministers are responsible to delegations representing separate Austrian and Hungarian parliaments.

Although the "common" ministry of defense administers the imperial and royal armies, the emperor acts as their commander in chief, and German remains the language of command in the military as a whole.

The compromise determines that commercial and monetary policy, tariffs, the railroad, and indirect taxation are "common" concerns to be negotiated every ten years.

The compromise also returns Transylvania, Vojvodina, and the military frontier to Hungary's jurisdiction.

Hungary and Croatia reach a similar compromise in 1868 at Franz Joseph's insistence, giving the Croats a special status in Hungary.

The agreement grants the Croats autonomy over their internal affairs.

The Croatian ban will now be nominated by the Hungarian prime minister and appointed by the king.

Areas of "common" concern to Hungarians and Croats include finance, currency matters, commercial policy, the post office, and the railroad.

The Nationalities Law enacted in 1868 defines Hungary as a single nation comprising different nationalities whose members enjoy equal rights in all areas except language.

Although non-Hungarian languages can be used in local government, churches, and schools, Hungarian becomes the official language of the central government and universities.

Many Hungarians think the act too generous, while minority-group leaders reject it as inadequate.

Slovaks in northern Hungary, Romanians in Transylvania, and Serbs in Vojvodina all want more autonomy, and unrest follows the act's passage.

The government takes no further action concerning nationalities, and discontent rises.

Vienna returns Vojvodina and its Serbs to Hungary when Austria joins Hungary to form the Dual Monarchy in 1867.

The Balkans will remain restive for at least the next four decades.

Serbs had been rewarded for their participation in an army that had quelled a Magyar rebellion in 1848–49 by the creation of a semi-autonomous Vojvodina (“Duchy”).

This includes part of the former Banat of Temesvár, most of Backa (between the Danube and Tisa rivers), and a small part of Baranja (between the Danube and Drava rivers)—all of which had long been integral parts of the Hungarian kingdom.

Even during the time of Turkish occupation, the region had begun to receive Serb migrants, and their numbers had increased significantly after the Ottomans were forced back across the Danube.

In addition, Magyar nobles had introduced peasant settlers from the Rhineland and Upper Austria, adding further to the ethnic mix.

The Ausgleich, or Compromise, of 1867, establishing the Dual Monarchy of Austria-Hungary, eradicates the autonomous status of the Vojvodina and exposes its Serbs to the full force of Magyar attempts at assimilation.

Conflicting interests keep Austria-Hungary from uniting the South Slavs: Slavonia, which is part of the Habsburg empire, ...

...is merged with Croatia as Croatia-Slavonia and placed under the rule of Hungary, while ...