In Austria, German liberals held political power in parliament from 1867 to 1879. They were determined to maintain German dominance in the Austrian part of the empire. The Czech leaders, subsequently labeled Old Czechs, favored alliance with the conservative and largely Germanized Bohemian nobility and advocated the restoration of traditional Bohemian autonomy. In essence, they wanted a reconstituted Bohemian Kingdom (including Moravia and Silesia) with a constitutional arrangement similar to Hungary's. In 1871 the Old Czechs seemed successful, for the government agreed to the Fundamental Articles, which would have reinstated the historic rights of the Bohemian Kingdom. Violent protest from both German and Hungarian liberals ensued, however, and the articles were never adopted.

Objecting to an increase of Slavs in the empire, the German liberals opposed the 1878 Austrian occupation of BosniaHercegovina . The emperor, stung by the rejection of his foreign policy, dismissed the liberal government and turned to Count Eduard Taafe's conservative "Iron Ring" cabinet (1879-83). The Taaffe government took the Slavic element into greater account than the liberals had and, in turn, was supported by the Old Czechs. Czechs made appreciable gains. A language decree promulgated in 1880 put Czech on an equal footing with German in Bohemian administration and law. In 1882 Charles-Ferdinand University in Prague was divided into two separate institutions: one Czech and the other German. These concessions, however, seemed insufficient to a newly developing Czech commercial and industrial bourgeoisie. Intense conflict ensued as Czechs and Germans attempted to control administration and education. When some of the Old Czechs attempted to work out a compromise with the Bohemian Germans in 1890, they were denounced by a younger and more radical intelligentsia. The next year the Old Czechs were soundly defeated by the Young Czechs, ending a period of attempted compromises.

While relations between Czechs and Germans worsened in Bohemia, they remained relatively tranquil in Moravia. Although the separate administrative status of Moravia had been abolished in the eighteenth century, the area was reconstituted as a separate crown land in 1849. In Moravia, unlike in Bohemia, a compromise was reached, in 1905, between the Czech majority and the German minority. Although the German language retained a slight predominance, the preservation of Czech language and culture was legally guaranteed. The compromise seemed to work reasonably well until the end of Hapsburg rule in 1918.

During the final decade of the empire, obstructionism by both Czechs and Germans rendered parliamentary politics ineffectual, and governments rose and fell with great frequency. The importance of the Young Czech Party waned as Czech politics changed orientation. Political parties advocating democracy and socialism emerged. In 1900 Tomas Masaryk, a university professor and former Young Czech deputy who was to become president of the Czechoslovak Republic, founded the Czech Progressive Party. Basing its struggle for national autonomy on the principle of popular sovereignty, the Czech Progressive Party supported parliamentary politics, advocated universal suffrage, and rejected radicalism.

Data as of August 1987