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Economy of the Habsburg monarchy refers to economic development and financial policies of the Habsburg monarchy, until the creation of the Austrian Empire in 1804. Central state institution, that oversaw economic and financial affairs in Habsburg lands, was the Court Chamber (German : Hofkammer), also known as the Aulic Chamber (Latin : Camera Aulica), formed in 1527 by Ferdinand I, and centered in Vienna. [1]
With the abolition of serfdom in the 18th century, the Habsburg monarchy, with the major industrial, mining areas and forestry of regions Moravia and Bohemia leading the way, began to experience unprecedented economic growth. Beginning in 1841 per capita annual growth in the Habsburg monarchy approached 3.6 percent, a number rivaling that of neighboring Germany. While this growth was rapid and astonishing, it was not sustained.
Austria started experiencing its first sustained industrial development in the 1820s. Despite not being part of Prussia's Zollverein, Austrian production of pig iron, coal, cotton textiles, woolens and foodstuffs was growing faster than in the other German states. All restrictions on new enterprises (including those engaged in commerce) were lifted after the death of Francis I. The Austrians also built the second horse-drawn railway in the European continent (Linz-Budweis). Work on a steam railway heading north from Vienna started in 1836, when the revolutions broke out the monarchy contained more than 1,600 km of track. Steam navigation began on the Danube in 1830 and expanded quickly. [2] Urban expansion of Vienna occurred and the population reached 400,000. [3] Austria and Bohemia had a strong textile industry back then, there were steel and manufacturing settlements and factories for the production of glass and paper. The first attempts at mechanization, concentrated in the textile sector and the steel industry, date from between 1830 and 1847. [4]
Within the next decade, a period of stagnation occurred, while other European countries began to experience a continued, steady growth. This slow down can be accredited, for the most part, to a period of ongoing war, beginning in 1848 and ending in 1866 with the Habsburgs' defeat by Prussia. This period of war, and a mounting budget deficit, took resources away from private industry, which discouraged industrial growth. This factor eventually brought the economy to a halt in the years after 1855 and Prussia also began to overtake Austria in industrial output rapidly, which eventually led to the Austrian defeat in 1866. Prussia produced five times more coal & iron and by 1870 its railway had twice the length of Austria's. [5]
The Habsburgs' wars in the mid 19th century caused considerable economic backwardness through the rest of the 19th century. As other European economies had grown from the 1850s on, the Habsburgs' had shrunk, a consequence of the Habsburgs' continuing wars and Eastern Europe's continuing neutrality.
Austria-Hungary, also referred to as the Austro-Hungarian Empire or the Dual Monarchy, was a multi-national constitutional monarchy in Central Europe between 1867 and 1918. A military and diplomatic alliance, it consisted of two sovereign states with a single monarch who was titled both Emperor of Austria and King of Hungary. Austria-Hungary constituted the last phase in the constitutional evolution of the Habsburg monarchy: it was formed with the Austro-Hungarian Compromise of 1867 in the aftermath of the Austro-Prussian War and was dissolved shortly after Hungary terminated the union with Austria on 31 October 1918.
The history of Austria covers the history of Austria and its predecessor states. In the late Iron Age Austria was occupied by people of the Hallstatt Celtic culture, they first organized as a Celtic kingdom referred to by the Romans as Noricum, dating from c. 800 to 400 BC. At the end of the 1st century BC, the lands south of the Danube became part of the Roman Empire. In the Migration Period, the 6th century, the Bavarii, a Germanic people, occupied these lands until it fell to the Frankish Empire established by the Germanic Franks in the 9th century. The name Ostarrîchi (Austria) has been in use since 996 AD when it was a margravate of the Duchy of Bavaria and from 1156 an independent duchy of the Holy Roman Empire (962–1806).
Maria Theresa was ruler of the Habsburg dominions from 1740 until her death in 1780, and the only woman to hold the position suo jure. She was the sovereign of Austria, Hungary, Croatia, Bohemia, Transylvania, Mantua, Milan, Galicia and Lodomeria, the Austrian Netherlands, and Parma. By marriage, she was Duchess of Lorraine, Grand Duchess of Tuscany, and Holy Roman Empress.
Franz Joseph I or Francis Joseph I was Emperor of Austria, King of Hungary, and the ruler of the other states of the Habsburg monarchy from 2 December 1848 until his death in 1916. In the early part of his reign, his realms and territories were referred to as the Austrian Empire, but were reconstituted as the dual monarchy of the Austro-Hungarian Empire in 1867. From 1 May 1850 to 24 August 1866, he was also president of the German Confederation.
Austrians are the citizens and nationals of Austria. The English term Austrians was applied to the population of Habsburg Austria from the 17th or 18th century. Subsequently, during the 19th century, it referred to the citizens of the Empire of Austria (1804–1867), and from 1867 until 1918 to the citizens of Cisleithania. In the closest sense, the term Austria originally referred to the historical March of Austria, corresponding roughly to the Vienna Basin in what is today Lower Austria.
The Austrian Empire, officially known as the Empire of Austria, was a multinational European great power from 1804 to 1867, created by proclamation out of the realms of the Habsburgs. During its existence, it was the third most populous monarchy in Europe after the Russian Empire and the United Kingdom, while geographically, it was the third-largest empire in Europe after the Russian Empire and the First French Empire.
The Revolutions of 1848 in the Austrian Empire were a set of revolutions that took place in the Austrian Empire from March 1848 to November 1849. Much of the revolutionary activity had a nationalist character: the Empire, ruled from Vienna, included ethnic Germans, Hungarians, Poles, Bohemians (Czechs), Ruthenians (Ukrainians), Slovenes, Slovaks, Romanians, Croats, Italians, and Serbs; all of whom attempted in the course of the revolution to either achieve autonomy, independence, or even hegemony over other nationalities. The nationalist picture was further complicated by the simultaneous events in the German states, which moved toward greater German national unity.
The Silesian Wars were three wars fought in the mid-18th century between Prussia and Habsburg Austria for control of the Central European region of Silesia. The First (1740–1742) and Second (1744–1745) Silesian Wars formed parts of the wider War of the Austrian Succession, in which Prussia was a member of a coalition seeking territorial gain at Austria's expense. The Third Silesian War (1756–1763) was a theatre of the global Seven Years' War, in which Austria in turn led a coalition of powers aiming to seize Prussian territory.
The Czech lands, then also known as Lands of the Bohemian Crown, were largely subject to the Habsburgs from the end of the Thirty Years' War in 1648 until the Austro-Hungarian Compromise of 1867. There were invasions by the Turks early in the period, and by the Prussians in the next century. The Habsburgs consolidated their rule and under Maria Theresa (1740–1780) adopted enlightened absolutism, with distinct institutions of the Bohemian Kingdom absorbed into centralized structures. After the Napoleonic Wars and the establishment of the Austrian Empire, a Czech National Revival began as a scholarly trend among educated Czechs, led by figures such as František Palacký. Czech nationalism took a more politically active form during the 1848 revolution, and began to come into conflict not only with the Habsburgs but with emerging German nationalism.
The Zollverein, or German Customs Union, was a coalition of German states formed to manage tariffs and economic policies within their territories. Organized by the 1833 Zollverein treaties, it formally started on 1 January 1834. However, its foundations had been in development from 1818 with the creation of a variety of custom unions among the German states. By 1866, the Zollverein included most of the German states. The Zollverein was not part of the German Confederation (1815-1866).
The unification of Germany was a process of building the first nation-state for Germans with federal features based on the concept of Lesser Germany. It commenced on 18 August 1866 with adoption of the North German Confederation Treaty establishing the North German Confederation, initially a military alliance de facto dominated by Prussia which was subsequently deepened through adoption of the North German Constitution.
Felix Ludwig Johann Friedrich, Prince of Schwarzenberg was a Bohemian nobleman and an Austrian statesman who restored the Austrian Empire as a European great power following the Revolutions of 1848. He served as Minister-President of the Austrian Empire and Foreign Minister of the Austrian Empire from 1848 to 1852.
Vormärz was a period in the history of Germany preceding the 1848 March Revolution in the states of the German Confederation. The beginning of the period is less well-defined. Some place the starting point directly after the fall of Napoleon and the establishment of the German Confederation in 1815. Others, typically those who emphasise the Vormärz as a period of political uprising, place the beginning at the French July Revolution of 1830.
The First Silesian War was a war between Prussia and Austria that lasted from 1740 to 1742 and resulted in Prussia's seizing most of the region of Silesia from Austria. The war was fought mainly in Silesia, Moravia and Bohemia and formed one theatre of the wider War of the Austrian Succession. It was the first of three Silesian Wars fought between Frederick the Great's Prussia and Maria Theresa's Austria in the mid-18th century, all three of which ended in Prussian control of Silesia.
Foreign relations exist between Austria and France. Both countries have had diplomatic relations with each other since the Middle Ages. Both countries are full members of the Council of Europe and the European Union.
Foreign relations exist between the alpine nations of Austria and Switzerland. Both countries have had diplomatic relations since the Middle Ages. The Habsburgs, who ruled Austria for more than six centuries, are originally from Aargau, Switzerland. The two countries are predominantly German-speaking. Austria has an embassy in Bern, a general consulate in Zürich and seven honorary consulates. Switzerland has an embassy in Vienna and six honorary consulates. Together, both countries organized the Euro 2008.
Neighborly relations exist between Austria and the Czech Republic, two member states of the European Union. Austria gave full support to the Czech Republic's membership of the European Union. The Czech Republic is a member state of NATO, while Austria is not.
The "German question" was a debate in the 19th century, especially during the Revolutions of 1848, over the best way to achieve a unification of all or most lands inhabited by Germans. From 1815 to 1866, about 37 independent German-speaking states existed within the German Confederation. The Großdeutsche Lösung favored unifying all German-speaking peoples under one state, and was promoted by the Austrian Empire and its supporters. The Kleindeutsche Lösung sought to unify only the northern German states and did not include any part of Austria ; this proposal was favored by the Kingdom of Prussia.
The economy of Austria-Hungary changed slowly during the existence of the Dual Monarchy, 1867–1918. The capitalist way of production spread throughout the Empire during its 50-year existence replacing medieval institutions. In 1873, the old capital Buda and Óbuda merged with the third city, Pest, thus creating the new metropolis of Budapest. The dynamic Pest grew into Hungary's administrative, political, economic, trade and cultural hub. Many of the state institutions and the modern administrative system of Hungary were established during this period.
The dissolution of Austria-Hungary was a major geopolitical event that occurred as a result of the growth of internal social contradictions and the separation of different parts of Austria-Hungary. The more immediate reasons for the collapse of the state were World War I, the 1918 crop failure, general starvation and the economic crisis. The Austro-Hungarian Empire had additionally been weakened over time by a widening gap between Hungarian and Austrian interests. Furthermore, a history of chronic overcommitment rooted in the 1815 Congress of Vienna in which Metternich pledged Austria to fulfill a role that necessitated unwavering Austrian strength and resulted in overextension. Upon this weakened foundation, additional stressors during World War I catalyzed the collapse of the empire. The 1917 October Revolution and the Wilsonian peace pronouncements from January 1918 onward encouraged socialism on the one hand, and nationalism on the other, or alternatively a combination of both tendencies, among all peoples of the Habsburg monarchy.