The German question was settled definitively by the battle of Königgrätz in 1866; and the emperor Francis Joseph, with characteristic Habsburg opportunism, was quick to accommodate himself to the new circumstances. Above all, he recognized the necessity for reconciling the Magyars to the monarchy; for it was their discontent that had mainly contributed to the collapse of the Austrian power. He had already, in 1859, as the result of a visit to Budapest, made certain modifications in the Bach system by way of concession to Magyar sentiment, and in 1861 he had had an interview with Deák, during which, though unconvinced by that statesman’s arguments, he had at least assured himself of his loyalty. He now made Beust, Bismarck’s Saxon antagonist, the head of his government, as the result of whose negotiations with Deák the Austro-Hungarian Compromise of 1867 was agreed upon. A law was passed by the Hungarian diet regularizing the abdication of Ferdinand; at the beginning of June Francis Joseph signed the inaugural diploma and took the oath in Magyar to observe the constitution; on the 8th he was solemnly crowned king of Hungary. The traditional coronation gift of 100,000 florins he assigned to the widows and orphans of those who had fallen in the war against Austria in 1849.

Once having accepted the principle of constitutional government, the emperor-king adhered to it loyally, in spite of the discouragement caused by party struggles embittered by racial antagonisms. If in the Cisleithan half of the monarchy parliamentary government broke down, this was through no fault of the emperor, who worked hard to find a modus vivendi between the factions, and did not shrink from introducing manhood suffrage in the attempt to establish a stable parliamentary system. This expedient, indeed, probably also conveyed a veiled threat to the Magyar chauvinists, who, discontented with the restrictions placed upon Hungarian independence under the Compromise, were agitating for the complete separation of Austria and Hungary under a personal union only; for universal suffrage in Hungary would mean the subordination of the Magyar minority to the hitherto subject races. For nearly forty years after the acceptance of the Compromise the attitude of the emperor-king towards the Magyar constitution had been scrupulously correct. The agitation for the completely separate organization of the Hungarian army, and for the substitution of Magyar for German in words of command in Hungarian regiments, broke down the patience of the emperor, tenacious of his prerogative as supreme “war lord” of the common army. A Hungarian deputation which came to Vienna in September 1905 to urge the Magyar claims was received ungraciously by the emperor, who did not offer his hand to the members, addressed them in German, and referred them brusquely to the chancellor, Count Goluchowski. This incident caused a considerable sensation, and was the prelude to a long crisis in Hungarian affairs, during which the emperor-king, while quick to repair the unfortunate impression produced by his momentary pique, held inflexibly to his resolve in the matter of the common army.

In his relations with the Slavs the emperor displayed the same conciliatory disposition as in the case of the Magyars; but though he more than once held out hopes that he would be crowned at Prague as king of Bohemia, the project was always abandoned. In this, indeed, as in other cases, it may be said that the emperor was guided less by any abstract principles than by a common-sense appreciation of the needs and possibilities of the moment. Whatever his natural prejudices or natural resentments, he never allowed these to influence his policy. The German empire and the Italian kingdom had been built up out of the ruins of immemorial Habsburg ambitions; yet he refused to be drawn into an alliance with France in 1869 and 1870, and became the mainstay of the Triple Alliance of Austria-Hungary, Germany and Italy. His reputation as a consistent moderating influence in European policy and one of the chief guarantors of European peace was indeed rudely shaken in October 1908, the year in which he celebrated his sixty years’ jubilee as emperor, by the issue of the imperial recript annexing Bosnia and Herzegovina to the Habsburg dominions, in violation of the terms of the treaty of Berlin. But his opportunism was again justified by the result. Europe lost an ideal; but Austria gained two provinces.

In his private life the emperor was the victim of terrible catastrophes—his wife, his brother and his only son having been destroyed by sudden and violent deaths. He married in 1854 Elizabeth, daughter of Maximilian Joseph, duke of Bavaria, who belonged to the younger and non-royal branch of the house of Wittelsbach. The empress, who shared the remarkable beauty common to all her family, took little part in the public life of Austria. After the first years of married life she was seldom seen in Vienna, and spent much of her time in travelling. She built a castle of great beauty and magnificence, called the Achilleion, in the island of Corfu, where she often o resided. In 1867 she accompanied the emperor to Budapest, and took much interest in the reconciliation with the Magyars. She became a good Hungarian scholar, and spent much time in Hungary. An admirable horsewoman, in later years she repeatedly visited England and Irland for the hunting season. In 1897 she was assassinated at Geneva by an Italian anarchist; previous attempts had been made on her and on her husband during a visit to Trieste.

There was one son of the marriage, the crown prince Rudolph (1857-1889). A man of much ability and promise, he was a good linguist, and showed great interest in natural history. He published two works, Fifteen Days on the Danube and A Journey in the East, and also promoted illustrated work giving a full description of the whole Austro-Hungarian monarchy; he personally shared the labours of the editorial work. In 1881 he merried Stéphanie, daughter of the king of the Belgians. On 30th January 1889 he commited suicide at Mayerling, a country house near Vienna. He left one daughter, Elizabeth, who was betrothed to Count Alfred Windischgrätz in 1901. In 1900 his widow, the crown princess Stéphanie, married Count Lonyay; by this she sacrificed her rank and position within the Austrian monarchy. Besides the crown prince the empress gave birth to three daughters, of whom two survive: Gisela (born 1857), who married a son of the prince regent of Bavaria; and Marie Valerie (born 1868), who married the archduke Franz Salvator of Tuscany.

See J. Emmer. Kaisser Franz Joseph (2 vols., Vienna, 1898); J. Schnitzer, Franz Joseph I. und seine Zeit (2 vols., ib., 1899); Viribis unitis. Das Buch vom Kaiser, with introduction by J.A. v. Halfert, ed. M. Herzig (ib., 1898); R. Rostok, Die Regierungszeit des K. u. K. Franz Joseph I. (3rd ed. ib., 1903).