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.