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He institutedthe Ausgleich (comprimise) that created a dual monarchy in Austria after the Habsburgs crushed a revolution. There were lots of minorities in Austria and the people were not getting what they wanted all the time. So Franz Joseph made the Ausgleich to try and give the people what they wanted. It let each part of the empire have its own constitution, legislature,capital (Vienna and Budapest), and government machinery. However, there would be one monarch, one foreign policy, one financial system,and one army.

Sources:

Western Civilizations by Jackson Speilvogel

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Q: How did Franz Joseph of Austria create a nation state?
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