Was the Habsburg Empire in 1714 a Rising Power—or a Patchwork Struggling to Hold Together?

In the southeastern part of Hungary, the Ottoman Empire was still present. Even after the Peace of Szatmár, the Turks still ruled over the Banat region. This means that the Ottoman Empire was not yet in decline—it would only begin to weaken in the second half of the 19th century. In 1714, there was still a Polish-Lithuanian Commonwealth in the northeast. France was the only country that was a compact, integrated, and significant territorial entity. North of Italy, there was a highly fragmented conglomeration of states, compared to which Hungary could stand tall.

Charles III clearly understood that the Kingdom of Hungary made up more than half of his empire’s territory. At that time, the empire’s primary role was to protect its citizens and its land. It needed to be a power capable of defending itself militarily. This was no easy task for the Habsburg Empire, as it was a highly fragmented territory.

After the War of Spanish Succession, the rearrangement of great power relations became even more significant. The Habsburgs gained territories in Italy, but this would change over the course of the 18th century. The empire stretched as far as the Low Countries. After another two-year struggle, they finally succeeded in liberating the Banat. However, this came at a great cost. When Charles III settled in Vienna, he considered strengthening the empire through mercantilism to be essential. He needed an economic policy that would allow him to maintain a strong army.

The Banat would not become part of the Hungarian county system until the reign of Maria Theresa. It was rebuilt under the supervision of the Imperial War Council. Since this was a region that had only been liberated through military conflict, it had to be defended—after all, the Turks could return at any time. Moreover, it was a marshy area that needed to be drained. Charles III sought to compensate for the financial shortfall caused by the costly liberation of the Banat. He recognized that internal reforms were necessary to sustain the military. Additionally, he wanted to remain involved in overseas trade, so he established the Austrian East India Company. This was both a commercial enterprise and a potential source of revenue.

This empire functioned under six different administrative systems. There were six governing councils overseeing the Italian, Bohemian, Austrian, and German provinces. Since 1690, under Leopold I, Hungary had been considered a crown land belonging to Vienna. Unlike England, this was not a centralized empire. Moreover, it was not just about accumulating wealth; reforms were also necessary for the country's renewal.