Federal Republic of Hungary AAR - Part IV - Peace in Hungary (1863-1867)

Upon the abdication of the King and Kossuth's resigning, the Diet debated for days upon days on the Hungarian Constitution. Finally, on 13 January 1863, the new Constitution was approved.

Hungary was to become a federal republic much like the United States, with there being provinces in the form of West Hungary, East Hungary, Kismarton, Poszony, West Erdely, East Erderly, Banat, and East Croatia. Of course, there were hopes that the other parts of Hungarian Croatia could be reconquered.

The new Constitution allowed many basic freedoms for the average Hungarian; universal voting, freedom of speech, freedom of press, etc. There were flaws; minorities that included Slovaks, Romanians and Serbians were unable to vote. Despite this, a large amount of the Hungarian people were pleased with the Constitution.

The army itself was destroyed due to the failed war; they were forced to relocate in the Poszony Province. Meanwhile, the liberal uprising in Székesfehérvár laid their arms down, pleased with the Constitution.

The Prince of Montenegro, Nikola Petrovic-Njegos, still has a large trust in the new Hungarian government, despite the abdication, and allies with us.

Gyula Andrassy led the nationalist and conservative faction in Hungary. He argued for a general few years of peace to recover and pay our massive debts to the Great Powers from the Third Austro-Hungarian War.

Ferenc Deak, the leader of the liberal faction in Hungary, also argued for a few years of peace, but wanted to expand as soon as possible and argued in favor of annexing Serbia and a few other regions to secure Hungary's defenses without Great Power intervention. However, the failure of Kossuth's liberal party held high over his faction, making his chances of victory supremely unlikely.

In the midst of the election, our troops are armed with better guns, which will help us against the Germans.

The election finishes in a massive victory for the Conservative Nationalists in Hungary. Guyla Andrassy is now the First President of Hungary. A ceremony celebrating the first President of Hungary is held in the former Palace of Buda.

Upon his election, Andrassy nationalizes the industry that was operated by the Spanish monarchy and makes it completely Hungarian, angering the Spanish investors.

In order to combat mass unemployment in Hungary, Andrassy decides to subsidize several factories.

Andrassy himself was a monarchist, yet still decided to respect the wishes of the Republic; bringing Karl I back to the throne would destabilize the young Republic.

Tax reform is initiated to combat the massive loans we had to take out in the War. Taxes were increased for all classes, mainly the peasantry.

In hopes to gain an ally before Austria possibly attacks us again, Andrassy sends several diplomats to France in hopes of getting a strong powerful ally.

By 23 September 1864, our massive debt was eliminated, bringing stability and prosperity back to the Hungarian army.

It is also around this time that US President Abraham Lincoln crushes the Confederate States and re-admits them back into the Union. This also came with an end to slavery in the United States, which was met positively with European progressives.

To combat militancy, non-secret ballots were allowed, preventing any form of interference during elections.

Both Alexander II of Russia and Otto von Bismarck are in a tight battle over influence in Austria, and who deserves to control it. We hope the Russians can gain influence over the Austrians, as that means we don't have to fight the Germans.

Meanwhile, only Spain, Italy and France show some interest in influencing us. Most powers are apprehensive due to us nationalizing the industry.

Tax reform is inducted about a year after the debt is eliminated. The aristocrats and capitalists have as low tax as possible, the peasants having more than them yet less than the middle class.

Andrassy proved to be a successful President; Hungary itself was re-stabilized after the War killed thousands of troops and nearly dissolved the Army. The terrible policies of Kossuth that nearly destroyed us in the Third Austro-Hungarian War were reversed. The Nationalist Conservatives have become a massive force.

What helps support this is that very few people are migrating out. There is no major crisis; everyone is at peace. The only people who are immigrating are likely Romanian, Slovak and Serbo-Croatian minorities.

Buda and Pest have became big cities ever since Hungary's independence 20 years prior. Even if the city was near destruction in the Third Austro-Hungarian War, Buda and Pest both thrive.

To our surprise, the Ottoman Empire is at war with Austria. But why?

The Italians decided to invade the Austrian Kingdom of Venetia. The area itself was mainly populated with ethnic Italians, which meant the Italian monarchy had a really good claim to the region.

To show our support for this, our relations with the Italian government increase.

France itself has attempted to created another Anti-Prussian Entente - this time without Italy. However, German nationalism is at a much higher high than French nationalism.

Despite the war, French engineers give a gift to the United States by creating a statue to welcome immigrants to America.

The Statue of Liberty would become the symbol of United States immigration. It could be troubling to us, as it could cause more Hungarians (and non-Hungarians) to flee in wishes of a better life in America.

The Italo-Austrian War has turned around significantly, and Italy now threatens to occupy the Habsburg capital.

The war ends, and Austria is forced to cede the Kingdom of Venetia and the southern part of the Kingdom of Tyrol, to the anger of the Germans in Tyrol.

As a republic, we have little allies. Switzerland remains the only other republic in Europe; problem is that they are neutral, and are unable to ally us. The United States is too isolationist to do so, and the other Latin American dictatorships are too poor and shitty to help us.

Administration in Hungary has improved, thanks to the administrative budget. Less corruption is happening, which is good for Hungarian democracy.

A massive amount of wealth means we can fund most of our government programs with minimal taxes.

Elections, once again, start.

Ferenc Deak is, once again, the chief liberal candidate. However, Andrassy's first term was successful enough, to the point where Deak already knows Andrassy is the next President.

Andrassy runs again, of course, in favor of making Hungary better, more educated and gradually rebuilding the Hungarian Army.

A shock occurs, as Prussia beats Russia, France and the Netherlands again in one war. They seize the Franche-Comte region from France to prevent them from attacking again, much to the anger of the European great powers.

Furthermore, German unification is proclaimed in the Palace of Versailles, much to the anger of the French. German nationalism ends up triumphing over aristocratic absolutism, much to our bargain...

A majority of voters in Hungary support the Nationalist Conservatives. Although about 30% support the Liberals, the nature of the FPTP system means the Liberals lose by massive margains.

The Nationalist Conservatives are generally more popular among ethnic Hungarians, which - combined with the voting policy only allowing ethnic Hungarians - serves as a way for Nationalist Conservatives to win easily.

The Italian government takes advantage of France's loss of France-Comte by attempting to retake Savoy and Nice, both areas being initially part of the Kingdom of Savoy - and later the Kingdom of Sardinia.

The election itself wasn't as decisive, but the Nationalist Conservatives win a decisive majority once more. Andrassy is president for another term, and Hungary shall continue its years of peace and redevelopment.

But will this continue with the Treaty of Poszony about to expire?