 In 1867 the Dual Monarchy was created; Croatian autonomy was restored in 1868 with the Croatian–Hungarian Settlement which was comparatively favourable for the Croatians, but still problematic because of issues such as the unresolved status of Rijeka.World War I brought an end to the Habsburg Empire.Croatia suffered great loss of life in the war, and while there was some late effort to establish a Croatian section of the Empire, ultimately the military defeat led to the establishment of a separate South Slavic state, which would later be named Yugoslavia.