The Revolutions of 1848 swept through Europe, and Austria saw calls for liberal and nationalist reforms that forced Metternich and the mentally disabled Emperor Ferdinand I to step down. The Emperor’s nephew, Franz Joseph, ascended to the throne at just 18. Initially, the revolutionary momentum pushed Austria toward constitutional reforms, but these were quickly curtailed as Franz Joseph consolidated power and reverted to absolutism, using military force to suppress revolts in places like Lombardy and Hungary. In 1850, Austria abandoned any constitutional promises, but it did free its peasant class, a move that later facilitated industrialization.
Austria’s foreign policy faced numerous challenges. During the Crimean War (1853–1856), Austria tried to remain neutral, a stance that angered both allies and potential foes. Austria’s influence in Italy, where the movement for unification (Risorgimento) was growing, soon led to the Second Italian War of Independence (1859). Piedmont and France, led by Napoleon III, provoked Austria into war, where it suffered critical defeats. By 1860, Austria had ceded Lombardy to France, and Italy unified under the Kingdom of Sardinia. These losses further pressured Austria into granting limited constitutional rights and initiating the “October Diploma” (1860) and the “February Patent” (1861), which introduced the Reichsrat, or Imperial Council, though Hungarian leaders resisted.
Tensions with Prussia grew, especially over the German Confederation. Austria joined Prussia against Denmark in the Second Schleswig War (1864), claiming Holstein but ultimately clashing with Prussia over its future. The rivalry culminated in the Austro-Prussian War of 1866, with Italy joining Prussia. Austria’s defeat at the Battle of Königgrätz forced it to cede Venetia to Italy and accept Prussian dominance in the new North German Confederation, ending Austria’s role in German affairs.
In 1867, Austria reached the Austro-Hungarian Compromise (Ausgleich), creating the Dual Monarchy. Austria and Hungary would now be co-equal realms under Emperor Franz Joseph, each with its parliament and government but sharing foreign and military policies. While Hungary gained autonomy, this arrangement heightened other national tensions, particularly among Slavic populations in Bohemia and Galicia, who also sought independence.
Throughout Franz Joseph’s long reign, Vienna transformed culturally and economically, especially in the “Gründerzeit” era of rapid expansion and modernization. Industrialization flourished, and the 1873 World Exposition in Vienna celebrated this prosperity despite an economic crash the same year. Politically, the empire saw emerging party divisions and expanded suffrage. Yet, nationalist and ethnic tensions continued to rise, especially after Bosnia and Herzegovina’s occupation (1878) and formal annexation (1908).
Vienna became a cultural center in the late 19th and early 20th centuries. The arts thrived with the Vienna Secession movement, led by Gustav Klimt, and the onset of Jugendstil, or Art Nouveau, architecture. The era produced musical giants like Mahler and literary figures such as Karl Kraus. However, growing demands for social reform, liberal challenges, and nationalistic tensions tested the Dual Monarchy. By 1914, Austria-Hungary faced mounting pressures from internal discontent, setting the stage for its eventual decline in the coming war.