With hunger and discontent spreading among the civilian and military populations of the Austro-Hungarian Empire, a crisis mounts within its government, as Hungarian Prime Minister Istvan Tisza resigns at the request of the Austrian emperor, Karl I, on May 22, 1917.
A great power in decline when World War I broke out in 1914, Austria-Hungary was a predominately agricultural society but was not agriculturally self-sufficient. The war had cut off the empire's two main sources of food, Russia and Romania, and the military effort cut domestic production significantly: by 1917, Austria's output of wheat had fallen to less than half of its 1913 total, and that of rye and oats had fallen even more. To make matters worse, Hungary—Austria's less powerful partner in the so-called Dual Monarchy—had closed its frontier with Austria in 1914 and ceased to consider its agricultural produce as a common resource, choosing instead to sell whatever surplus it had to the army and to Germany. Defeat on the battlefield against Russia in the first years of war forced Austria-Hungary to rely heavily on its ally, Germany, to keep them in the war effort, and the Italian entrance into the war in 1915 forced the Austrians to fight on yet another front, to the south.
On November 21, 1916, Emperor Franz Josef died; he was succeeded by his great-nephew, Karl I, who assumed supreme command of the army, dismissing longtime chief of the general staff, Conrad von Hotzendorff. Though the new emperor promised to institute reforms and build consensus within the Dual Monarchy, his efforts led initially to disorder and dissent. Karl's liberalism posed a direct challenge to the Hungarian government and its prime minister, Ivan Tisza. His reformist opposition within Hungary, Party of Independence, led by Mihaly Karolyi, favored a total break with Austria when the compromise between the two nations came up for renewal in 1917.
Socialists and revolutionaries supported Karolyi, who organized major demonstrations in Budapest on May 1, 1917. Meanwhile, though he had urged restraint in 1914, Tisza was by now associated in the mind of the Hungarian public with the aggressive prosecution of a war effort many had come to see as hopeless, and had begun to lose much-needed support. At the emperor's request, he tendered his resignation on May 22, 1917. He was succeeded by Moritz Esterhazy, who expressed his desire to build "Hungarian democracy"; the new deal between Austria and Hungary, signed in December, would last just two years, not the expected 20. Still blamed for the continued war effort, and its impending failure, Tisza was assassinated on October 31, 1918, by Magyar members of the Communist Red Guard.
Meanwhile, barely a week after Tisza's resignation in May 1917, Austria-Hungary experienced the first of a series of mutinies within its army. Led by nationalist groups, the first mutiny involved a group of Slovenes; no sooner had it been suppressed than others broke out, led by Serbs, Rusyns (or Ruthenians) and Czechs.