Franz Joseph I dies.

Emperor of Austro-Hungarian Empire, Franz Joseph I, succumbs to pneumonia.

Franz Joseph I was more than an emperor. He was a symbol. His reign lasted for almost 70 years. There was next to nobody in the Empire that remembered times when he wasn't the emperor. His reign might not be the most succesful one - as his Empire was slowly but surely weakened and replaced in the world map by Prussia, and then German Empire. But he was genuinely loved by many.   He was, however, too stagnant in his last years. He wasn't ready to make reforms that were needed for its continuous survival. He was conservative... even too much. His heir, archduke Franz Ferdinand, was vastly different... and seen by many as the last great ruler of the Austro-Hungarian Empire.   He had a vision. He was as conservative as Franz Joseph, but he understood that if the old order wants to survive, it has to adapt. He wasn't ruthless - and strong - enough to squash the dissent like tsars of old. He couldn't stay undecided and act without decisiveness - lest he wanted to end like Louis XVI. The only way for him and the Empire to survive was to stand as the leader of those who wanted to change the country - and stop them from destroying it. Channel their strength into reforms and change them from a threat to the country into a foundation of its strength.   He dreamt of a reformed Empire. A monarchist and catholic version of United States, with the country divided according to principle of nationality and with each state having autonomy - but all of them ultimately serving the Habsburg dynasty, whose power over inter-state and foreign affairs plus the army and navy would ensure Habsburg power for next century at least. Even the death of his wife and barely avoiding his death didn't change that, if anything it pushed him into an overdrive.   While absolutely hated by the leadership of Hungary - who saw him as a deadly threat to their power - the rest of the nations of the Empire welcomed his coronation as a signal of times changing.   He spend the last years as commander-in-chief of the Austro-Hungarian Army, which he led - despite lack of military experience - with relative successes. He was careful, never attacked unprepared and was first to make tactical retreat when the need arised. This saved many lives of the citizens of the Empire, especially when one compared their casualties to those of the German Empire. This, and the knowledge of him being an advocate for the rights of the nations left behind by the Austro-Hungarian Compromise gave him popularity.   There was no time left to lose. The Austro-Hungarian Empire might have been internally weak and suffering from dissent to the point of relying on German help more and more... but the new emperor had popularity. He couldn't wait until the end of the war - only the German Empire's victory would mean Austro-Hungarian survival... and that meant becoming a de facto subject state of the Kaiserreich. The only way for the Habsburg monarchy to remain a player rather than a chesspiece was to initiate reforms right now. With the still strong army and fronts being faraway guaranteeing safety in the transition period.   The German Empire could be used as well - they couldn't lose their strongest ally. They had to support him. If the reforms caused revolt or civil war now, they would have no choice but support Franz Ferdinand... even against their own wishes. There was no better moment for the last desperate attempt to avoid the Russian scenario that was unfolding before the very eyes of the Franz Ferdinand.   Massive reforms were passed, using the emperor's authority and popularity as a main base. The Empire was reorganized part by part, with new autonomous regions and regional enclaves, each of them subject only to Emperor and his council of ministers, and divided according to the borders between national majorities.   All of that with visible resistance from the Hungarian government. According to the Emperor's plans - all delays, errors and mistakes of his reforms were almost naturally pushed at the Hungarian resistance against losing their position in the Empire and being 'drowned' in a sea of Slavs that surrounded them and were a majority on many of the traditionally Hungarian lands. The popular opinion of the people of the Empire slowly drifted to duopoly between 'good Emperor' and 'bad Hungarians', further strengthening Emperor's position.   And even if they started an open civil war... they would either be defeated by the German Empire and loyalist forces from the rest of the monarchy... or they would lead to the collapse of the imperial's presence on Balkans, northern Italy and Russian front, which would mean complete collapse of Empire itself. Thus leading to the end of the Hungarian position as a whole.   All of that while beginning humble probes towards the possibility of signing the peace treaty - while there was next to no chance of this succeding, what really was the point of this was showing the Empire as a sensible partner that could be used in the postwar world order as a counter to the German Empire's power, regardless of who exactly would win.