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The Austro-Hungarian Compromise of 1867 (German: Ausgleich, Hungarian: Kiegyezés) established the dual monarchy of Austria-Hungary. The Compromise re-established the sovereignty of the Kingdom of Hungary, separate from and no longer subject to the Austrian Empire. Under the Compromise, the lands of the House of Habsburg were reorganized as a real union between the Austrian Empire and the Kingdom of Hungary.

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Austria-Hungary, the Dual Monarchy. The compromise “Ausgleich” of 1867 divided the Habsburg Empire into two separate states with equal rights but under one sovereign and became known as the Dual Monarchy “Doppelmonarchie”.

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Dual monarchy of England and France - Wikipedia / The Royal Arms of England during Henry VI's reign. As Duke of Cornwall, Henry's arms were those of the kingdom, differenced by a label argent of three points. Upon his accession, he inherited the use of the arms of the kingdom, and impaled them with those of France to reflect the de jure dual monarchy of France and England

H.I.R.M. Emperor Franz Joseph I of Austria, King of Hungary (1830-1916) by Schrotzberg - Franz Joseph was troubled by nationalism during his entire reign. He concluded the Ausgleich of 1867, which granted greater autonomy to Hungary, hence transforming the Austrian Empire into the Austro-Hungarian Empire under his dual monarchy.