Background
The Austro-Hungarian Compromise of 1867 had granted extensive political autonomy to the Hungarians in Hungary, but left other significant non-German-speaking groups, most notably the Czechs, under the authority of the Austrian portion of the Empire. Other nationalities had protested the terms of the constitution, and by early 1870, non-German Liberals had quit the parliament. In the interest of a reconciliation with the minorities, the Emperor appointed Alfred Potocki as his Prime Minister.
Potocki was able to gain support for the constitution from the Poles, Slovenes, and Rumanians, but the Czechs remained obstinate. However, Prussian victory over France in the War of 1871 and the unification of the South German states with Prussia caused great Imperial mistrust of Potocki's largely German-Liberal cabinet. Thus, in February 1871, Potocki was replaced by Count Hohenwart, who represented a more anti-Liberal Federalist interest. Hohenwart appointed Albert Schäffle as his commerce minister. Schäffle's vision, however, extended far beyond his title, and he embarked on a sweeping program to reorganize the Austrian lands and reconcile the Czechs to the constitution. This program culminated in a series of proposed changes to the Austrian constitution that were ratified by the Bohemian Diet, the "Fundamental Articles".
Read more about this topic: Fundamental Articles Of 1871
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