Austrian-Hungarian relations

Until 1918, Austria and Hungary were an integral part of the Habsburg monarchy . The revolution of 1848-1849 in the Austrian Empire and the events connected with it made their own adjustments to the life of the empire. After the revolution, the Hungarians tried to form their own constitution ^[2] . According to the provisions of the constitution, Hungary was supposed to gain independence from the Habsburg monarchy, but Austria refused to accept this fact and declared the constitution invalid ^[3] . As a result, this led to a deterioration in Austrian-Hungarian relations, since Hungary nevertheless proclaimed independence in 1849. The Austrians crushed the rebellion with the help of Russian troops ^[4] . After these events, the Austrians tried to establish good relations with Hungary and in 1862 paid compensation for the suppression of the uprising. In 1866, the Austrian Empire was defeated by Prussia at the Battle of Sadov , which led to the cessation of Austrian hegemony in the German-speaking regions of Europe . After these events, Austria and Hungary become almost equivalent territories in the empire ^{[3] [5]} .

On March 15, 1867, an Austro-Hungarian agreement was signed between the Austrian Emperor Franz Joseph I and representatives of the Hungarian national movement led by Ferenc Deak , according to which the Austrian Empire was transformed into the dualistic monarchy of Austria-Hungary . The agreement provided for the provision of the Hungarian part of the state full independence in internal affairs while maintaining at the level of the general imperial government only issues of foreign, naval and financial policy. The creation of Austria-Hungary became a way to overcome the protracted crisis of the empire caused by the rise of the national movements of the peoples of the country, the strengthening of national elites, military defeats in the Austro-Italo-French 1859 and Austro-Prussian 1866 wars, the growth of the Pan-Slavic threat, as well as the failure of attempts to reform the empire on the principles of centralism. In Austria-Hungary there was a general army, the emperor ^{[6] being the} commander in chief. Every ten years, Austria and Hungary had to determine what percentage of their budget they allocate for the needs of the empire. For example, in 1868 it was decided that the Austrians would invest 70% and the Hungarians 30% in the total budget, which amounted to about 1,000,000 guilders ^{[6] [7]} .

The changes that have taken place have been perceived differently by the Austrians and Hungarians. In 1931, the Hungarian politician Albert Uppony made a statement that for the Hungarians, Austria-Hungary was an integral part of the Austrian state ^[8] . Foreign policy was carried out in accordance with the interests of both parts of the state, but the Hungarians and Austrians had different citizenships. Hungary also continued to strive for complete independence from Vienna . The general army was negatively perceived by the Hungarian side and was considered a manifestation of discrimination by the Austrians. Gradual changes in the name of the institutions of power symbolized the further estrangement of Hungary. For example, in Hungary the term “empire” is no longer used in official documents. After much debate, the coat of arms of Austria-Hungary was changed. In 1804, the double-headed eagle became a symbol of the whole empire, but since 1915 it was used only as a symbol of the Austrian part of the state ^{[9] [10]} .

Despite these events, Austria-Hungary existed until the end of World War I. In 1919, 1920, the Paris Peace Conference took place, as a result of which the German Empire and Austria-Hungary ceased to exist. Austria and Hungary suffered heavy territorial losses and became two separate states ^[11] . From 1918 to 1938, relations between Austria and Hungary were governed by the Paris peace agreements, there were territorial disputes between the countries, the restoration of the Habsburg dynasty was discussed on the sidelines of the authorities, the country's political life was in full swing between the democratic and authoritarian forces, which determined the level of interaction between Vienna and Budapest ^{[ 12]} .

The Republic of Austria and the Hungarian Soviet Republic were considered successor states of Austria-Hungary, were among the losers in the First World War and suffered heavy territorial losses after the signing of peace treaties. The Republic of Austria filed territorial claims on German-speaking territories in western Hungary, which had a very negative impact on bilateral relations. In the Hungarian Burgenland there were major riots, which led to the invasion of the Hungarian army. As a result, with the participation of other states in the city of Sopron and the surrounding areas, a referendum was held, which helped to reduce the passions in relations between Austria and Hungary ^[13] . The Hungarian Soviet Republic did not exist for long, then the Soviet power was overthrown and a kingdom was proclaimed, and Austria granted asylum on its territory to many Hungarian Communists, which was very negatively perceived by Budapest. In 1921, Hungary lost Burgenland to Austria, which entailed the normalization of relations. However, Hungarian politicians did not believe in Austria's ability to exist as a sovereign state entity due to the aggressive foreign policy of the Third Reich in the 1930s ^[12] .

In 1938, the situation surrounding Austria’s possible accession to the Third Reich was the subject of discussion at the international level, which also influenced relations with Hungary. The Hungarian government closely watched the events in the Third Reich and Austria: the signing of the Berchtesgaden Agreement by these countries, the negotiations held on February 12, 1938 between Adolf Hitler and Kurt Schuschnigg , were assessed by the Hungarians as threatening the loss of sovereignty by Austria. Although the Hungarians were not completely sure of the possibility of uniting the Third Reich and Austria ^[14] . But after a short period of time, Austria ceased to exist after becoming part of the Third Reich and Hungary was forced to interact directly with Berlin ^[15] . The Hungarian Embassy in Vienna became known as the Consulate General, new diplomats and staff were appointed in this diplomatic mission ^[16] .

In 1938, Hungarian Foreign Minister Kalman Kanya made a statement that the Anschluss of Austria was just a matter of time. Hungary did not diplomatically react to Austria’s accession to the Third Reich because it did not have sufficient leverage to somehow influence this process, and also feared a negative reaction from Berlin ^[15] . Eduard Baar-Baranfels became the last ambassador of Austria to Hungary (he held the post from November 1936 to March 1938) before the Anschluss and the resumption of bilateral relations after the end of World War II . After the Anschluss, Eduard Baar-Baranfels was removed from his post and then arrested. Austria lost the opportunity to conduct foreign policy on its own and with Hungary did not have the opportunity to maintain official political contacts ^[17] . As part of the Third Reich, Austria was transformed into the Alpine and Danube Reichsgau and maintained relations with Hungary only in the economic sphere ^[15] .

In May 1945, immediately after the end of World War II, the first unofficial contacts between the former Hungarian diplomats in Vienna and the new Austrian authorities resumed in Europe. They dealt with issues regarding the return of seized real estate, as well as problems with refugees. A few months later, an agreement was reached on the supply of coal by Hungary, since in Austria there was a shortage of this mineral ^[18] . To resume bilateral relations between Austria and Hungary after the end of World War II, trade has become a major driving force. From 1945 to 1949, the Austrian Ministry of Foreign Affairs mainly oversaw the establishment of trade relations with Hungary, but the process was slow despite the interest of both parties. In the fall of 1946, it was decided to send a trade delegation from Austria to Hungary to start negotiations. As a result of negotiations in December 1946, the first Austro-Hungarian trade agreements were concluded: a commodity exchange agreement and a payment agreement. Negotiations resumed in the summer of 1947 and ended in September 1948 with the signing of another trade agreement. Hungary began to supply food, and the Austrians in exchange supplied industrial products ^[19] .

At the non-profit level, countries have also made various attempts to establish contacts. In August 1945, the Hungarian Red Cross Committee became the first official body of Hungary to resume work in the building of the Hungarian Embassy in Austria at Bankgasse . Then, the Hungarian Ministry of Foreign Affairs sent a diplomat to Vienna in order to find an opportunity to establish semi-official relations between the countries. Due to the political situation in the world and the military occupation of both countries by third powers, political relations developed very slowly. For example, in November 1945, the Hungarian diplomatic mission in Vienna was called the Royal Hungarian Consulate General in Exile. However, the Hungarian Minister of Defense, Odon Krivachi, was the de facto leader of Hungary and met on 4 January 1946 with Austrian President Karl Renner . In May 1946, the Hungarian diplomat Laszlo Bartok arrived in Vienna to dissolve the Royal Consulate General, and in June 1946 he became the head of the Hungarian diplomatic mission in Austria, which at that time did not have official diplomatic status. In the summer of 1947, Laszlo Bartok left his post due to political events in Hungary, in which he was replaced by Jozef Garzuli ^[16] .

The first official trip of the Austrian diplomat Rudolf Zemann to Hungary took place on January 12, 1946. In Budapest at that time there was an Austrian Support Office (Österreichisches Hilfsbüro), which was not an official diplomatic mission. Accordingly, Rudolf Zemann stated that Austria did not have a diplomatic mission in Budapest through which contacts could be established between the governments of both countries ^[20] . During his trip, Rudolf Zemann discussed the possibility of the Austrian Foreign Minister arriving in Hungary, as well as the resumption of diplomatic relations ^[21] . For Austria to resume diplomatic relations, it was necessary to obtain recognition from Hungary, as well as for the country to become a member of the United Nations (where Budapest was included only in 1955) ^[22] .

January 18, 1947 Hungary recognized the Austrian Republic. Shortly afterwards, diplomatic missions appeared in Vienna and Budapest ^[23] . Manfred Falser was appointed Austria's first “political representative” in Hungary ^[24] , and the official bilateral relations of these states were restored after decades of unrest ^[25] . However, the situation deteriorated sharply in 1948 after the communists came to power in Hungary ^[18] . Also, during this period of time between the United States of America and the USSR , a confrontation began, which also affected Austrian-Hungarian relations. In accordance with the outcome of the Yalta Conference, Hungary fell under the influence of the Soviet Union, which was enshrined in the country's constitution, adopted on August 20, 1949. On May 15, 1955, the Declaration of Austrian Independence was proclaimed, which had a positive effect on relations with Hungary. This event became one of the most important manifestations of the thaw in world politics that occurred after the death of Joseph Stalin ^[26] .

Before the 1956 Uprising, Hungary conducted a pro-Stalinist course led by Matthias Rakosi . However, the uprising was brutally crushed by the Soviet troops: the militia leader Imre Nagy was executed, and Janos Kadar became the de facto leader of the Hungarian People’s Republic ^[27] . The invasion of Soviet troops led to the fact that about 180,000 Hungarian citizens fled to Austria. Just a year after the reconstruction of the armed forces, Austria faced the first difficulties, the military took part in the deployment of refugees and the protection of the state border. The Office of the UN High Commissioner for Refugees organized the resettlement of 84,000 Hungarian refugees to the United States of America, Canada and Western European states , resulting in a little less than 18,000 Hungarians in Austria ^[28] .

The Cold War had a significant impact on Austria, as a small country was at the epicenter of the conflict between NATO and the Warsaw Pact over a common border with Hungary and Czechoslovakia . In the summer of 1948, the construction of the Iron Curtain , the border zone of the communist countries, began on the border between Austria and Hungary. This artificial separation of Western Europe from the communist countries of Eastern Europe existed until 1989. The border between Austria and Hungary began to be a particularly fortified zone, where there were barbed wire, watchtowers and a minefield ^[29] . In 1953, after the death of Joseph Stalin and the subsequent change of power in the Soviet Union in the communist countries of Europe, hopes arose for changes in the foreign policy of the USSR. After Nikita Khrushchev came to power in the USSR , bilateral relations between Austria and Hungary also improved. The Hungarian leadership proposed the dismantling of the Iron Curtain, but this was actually carried out in 1989 ^[30] . In the summer of 1989, Hungary opened the border with Austria as a result of a European picnic , which allowed 600 to 700 citizens of the GDR to flee to Western Europe. These events accelerated the gradual collapse of the Warsaw Pact and contributed to the destabilization of the internal situation in the GDR ^[31] .

Since 1989, Austria has repeatedly tried to mediate in improving relations between Western and Eastern Europe. Austria saw for itself new economic and social opportunities for growth in relations with countries of Eastern Europe ^[32] . In 1989, the opening of borders with Hungary marked a new era in relations between the two countries ^[23] , in addition, Austria began to provide economic assistance to countries in Eastern Europe. At the end of 1989, Austria, Italy , Hungary and Yugoslavia signed a cooperation agreement, which had a positive effect on the relations of these countries ^[33] . In 1995, Austria joined the European Union and became a member of the Schengen Agreement . In May 2004, Hungary joined the European Union, and the Schengen Agreement in 2007. Since then, diplomatic relations between the countries have intensified in all areas, as Austria has become one of the most important trading partners for Hungary ^[34] . The two states have many common interests, although there are differences at the European level. The diplomatic missions of Austria and Hungary issue Schengen visas for visits to both states even if the embassy of only one of these states is located in the country of residence of a citizen wishing to visit these countries ^[35] .

In 2015, the European migration crisis began , which affected Austria and Hungary as well. These two countries have differently solved the problem, the Austrian authorities accused Hungary of inhumane treatment of refugees ^[36] . In early September 2015, the refugee situation on the border between Austria and Hungary was resolved after the Hungarians blocked the railway connection. On September 4, 2015, thousands of people made their way on foot to the Austrian border, located 170 kilometers from where the trains were stopped by the Hungarian police. Refugees walked towards Austria, led by a man flying the flag of the European Union. Unlike Hungary, Austria provided support to refugees by providing them with means of transportation for departure to refugee camps. However, not all refugees went on foot to Austria, some remained at the train station in Budapest, where they were beaten by local residents, which was stopped only after police intervention. However, at the same time, Austria tightened border controls on the Hungarian border. In February 2016, Hungary supported the proposal of Austria to block the Balkan refugee route: the Austrians proposed stopping the refugees by military and police forces on the border between Greece and Macedonia ^{[37] [38]} .

Bilateral relations between Austria and Hungary are currently described by the Austrian Foreign Ministry as "excellent." They consist of extensive ties at all levels, from intergovernmental contacts to university collaboration ^[35] . Austria organizes exhibitions, concerts and film programs in Hungary, which are held in close collaboration with Hungarian museums, galleries, concert halls, cinemas, and schools ^{[39] [40]} . There are also about 150 scientific and cultural projects in the education sector ^[35] , and interaction has been established in joint projects, research, and summer language schools ^[41] . In addition, there is an Austro-Hungarian society, which is a public organization promoting the idea of ​​good relations between countries and the protection of national minorities ^[42] .

During the dualistic monarchy, Austria-Hungary was economically unevenly developed. The economies and societies were comparable with Western Europe, and the economy of Transit was tied to agriculture and inferior to the Austrian part of the country. A strong rural exodus occurred in both halves of the empire, one struggling with massive social problems that were further complicated by linguistic differences. In 1850, a law came into force, according to which duties on goods from other parts of the state were abolished within the country, which had a positive effect on the development of the general economy. The largest consumer of Hungarian products was Austria. Hungary supplied 76% of its products to Austria, and Austria 37% of its products to Hungary ^[43] . In the mining industry, Austria was far ahead of Hungary due to its more modern technology. Since this sector was crucial for industrial development, Hungary tried to catch up with Austria, but these attempts were unsuccessful ^{[44] [45]} . In the transport sector, both parts sought to expand the railway network and shipping, but even here there was great competition among them ^{[46] [47]} .

After the collapse of Austria-Hungary, the Austrian economy was more developed, since industrial zones remained on its territory, and Hungary mainly lived on agriculture. After the collapse of the empire, the Austrians lost buyers of industrial products, and Hungary lost its main trading partner for the supply of agricultural products. This led to overproduction of products culminating in rising inflation in both countries. After the end of World War II, there were small economic contacts between the countries, since Austria depended on the Marshall Plan , and the Mutual Economic Assistance Council raised the Hungarian economy. As a result, Austria went on the capitalist path of development, and Hungary on the socialist path. In the following decades, countries were isolated from each other by the Iron Curtain. Although countries continued to use the common Danube River as a transport route, road communication remained blocked ^[48] .

From 1989-1990, the economic relations between the two countries began to develop very dynamically and were accompanied by lively trade. Since the 1990s, Hungary has been the largest recipient of investments in Eastern Europe from Austria. Since then, Austria has invested more than 8 billion euros in the Hungarian economy. Of particular importance is the construction, paper and automotive industries, as well as real estate trade, brick and sugar production. In addition, the Austrians invested in retail development, as well as in the finance and services sector in Hungary. The Hungarian government also invested heavily in the Austrian economy. In 2014, Austria exported goods to Hungary in the amount of 4.3 billion euros , and Hungary delivered goods to Austria in the amount of 3.8 billion euros ^[49] .

• Klaus Fiesinger: Ballhausplatz-Diplomatie 1945—1949. Reetablierung der Nachbarschaftsbeziehungen und Reorganisation des Auswärtigen Dienstes als Formen außenpolitischer Reemanzipation Österreichs (= tuduv-Studien: Reihe Politikwissenschaften. Band 60). tuduv-Verlag, München 1993.
• József Galántai: Der österreichisch-ungarische Dualismus 1867—1918. Budapest 1985.
• Peter Haslinger: Hundert Jahre Nachbarschaft. Die Beziehungen zwischen Österreich und Ungarn 1895—1994.
• Karen Henning, Sandra Lakitsch: Die bilateralen außen- und kulturpolitischen Beziehungen zwischen Österreich und Ungarn seit 1989. Diplomarbeit, Universität Wien 1996.
• Richard Lein: Vom zwischenstaatlichen Konflikt zu bilateraler Verständigung. Die Burgendlandfrage und ihre Rolle in den österreichisch-ungarischen Beziehungen. In: Csaba Szabo (Hrsg.): Österreich und Ungarn im 20. Jahrhundert. Institut für ungarische Geschichtsforschung, Wien 2014.
• Werner Link: Der Ost-West-Konflikt: die Organisation der internationalen Beziehungen im 20. Jahrhundert. 2., überarb. u. erw. Aufl., Kohlhammer, Stuttgart 1988.
• Walter Rauscher: Die außenpolitischen Beziehungen zwischen Österreich und Ungarn in der Zwischenkriegszeit. In: Das Institutionserbe der Monarchie — das Fortleben der gemeinsamen Vergangenheit in den Archiven. Berger, Wien/Horn 1998.