Why did Franz Joseph agree to the Austro-Hungarian Compromise of 1867?

Emperor Franz Joseph agreed to the Austro-Hungarian Compromise of 1867 primarily as a pragmatic response to the Habsburg monarchy’s weakened position following its defeat in the Seven Weeks’ War of 1866.12

The military failure against Prussia, which resulted in Austria's expulsion from Germany, made the constitutional reorganization of the empire an urgent necessity. By 1867, it had become clear that the previous attempts at centralized rule had failed and that a compromise with the restive Hungarians was essential to maintain the state's stability.234

By granting Hungary full internal autonomy, Franz Joseph secured an agreement that the empire would remain a single, unified state regarding foreign policy and military affairs. This arrangement allowed the emperor to preserve his dynastic prestige abroad while addressing the immediate internal crisis. Although he initially accepted the terms with reluctance, he ultimately viewed the compromise as the essential constitution of the Dual Monarchy.124