Italy and Germany: nationalism had led to the creation of unified states
Austria: nationalism => destruction of the Hapsburg dynasty
After 1848-49: Austrian power strengthened absolutism and central control + expanded secret police
1866: the loss of war with Prussia ==> Austria makes concessions to the Magyars.
1867: the settlement ==> split the Hapsburg territories into Austria and Hungary

    > Hungary gained control over its internal affairs
    > the emperor became the king of Hungary
    > three common ministries: foreign affairs, military affairs and financial affairs
* The Magyars carried out an intense program of Magyarization => antagonized many other nationalities.