In April 1866 the emperor Franz Joseph issued the order to the mobilization of its army and the Prussian War was declared. Austria with the German allies had little chance to win. On the 4th oof July began the battle by Hradec Kralove. Crushing defeat sought thirteen thousand Austrian soldiers, seventeen thousand wounded and thirteen thousand prisoners. While the Prussian side didn't reached the number of casualties over two thousand.
Austria - Hungary in hands of the Empress
Bitter defeat of Austria by Prussia began to shake the ground under the Habsburg monarchy. It was necessary to combine with Hungary, empress Elisabeth wanted Franz Joseph to do that before the war. She did a lot for that after the war. Empress went to Budapest to deal this union, where she met with major politicans, as were a Hungarian lawyer and aristocrat Ferenc Deak and count Julius Andrássy, them together prepared the way for unification. Both sides have agreed on the official compensation Ausgleich and it was signed on the 29th of May in 1867. Hungary stand out on an internal autonomy, and under its direct rule was the St Stephen's territory, namely Hungary, Transylvania and Croatia - Slovenia was then an autonomous kingdom. Austria with Hungary became a dual monarchy known as Austria-Hungary Empire, ruled by Austrian Emperor Franz Joseph I. On the 8th of June in 1867 was Franz Joseph I. crowned as an Hungarian apostolic king. Hungarian government was limitations to be able to appoint or dismiss the Emperor of Hungary and the Prime Minister to summon, suspend or revoke the parliament of Hungary. If the Parliament did not agree with something - they turned to His Apostolic Majesty the Emperor and King, his decision was crucial.
Family tragedy before the ceremonial coronation of Franz Joseph I, King of Hungary
Even before the coronation ceremony came the bad news from Mexico, where was Maximilian, brother of Franz Joseph. Former Mexican Emperor Maximilian was captured, imprisoned and sentenced for crimes against the Mexican people to death. The same week came yet another bombshell. Accidentally burned to death Matilda, daughter of Emperor's eighteen-year-old cousin Archduke Albrecht. Her dress caught from lit cigarettes and died of burns.