The transformation of the Austrian Empire into Austria-Hungary dates from the 'Ausgleich' (usually tranlated as 'Compromise') of 1867.
In 1866 Austria suffered a disastrous defeat at the hands of Prussia and was in effect expelled from Germany. There was a danger that the Hungarians, who had rebelled in 1848-49, might again rise in rebellion against Habsburg rule. (That said, negotiations for some kind of autonomy for Hungary had been in progress before the war of 1866).
This vast empire (the second largest state in Europe - after Russia) disintegrated in 1918.
AUSTRIAHUNGARY
Fourteen Points 1.Open diplomacy 2. Freedom of the seas 3. removal of economic barriers 4. Reduction of armaments 5. Adjustment of colonial claims 6. Conquered territories in Russia 7. Preservation of Belgain sovereignty 8. Restoration of French territory 9. Redrawing of Italian frontiers 10. Division of AustriaHungary 11. REdrawing Balkan boundries 12. Limitations on Turkey 13. Eastablishment if an independent Poland 14. Association of nations