Throughout the ensuing years Austria-Hungary's position and influence amongst the great European powers was of little direct importance. In the first place the Dual Monarchy was occupied continuously with the most vexing internal questions caused by the incessant difficulties arising between its racially different population. These were responsible for the fall of one ministry after another, and frequently caused grave apprehension to all Europe. For many years the disintegration of the empire was feared and expected. But in spite of all difficulties it held together. In the second place the country remained for many years chiefly agricultural and even to-day, considering its extent, is only moderately industrial. This made it unnecessary for Austria-Hungary to concern itself directly with such questions as the colonization of Africa or the division of China. Only occasionally it made its influence felt indirectly by supporting the policies and claims of its two allies, Germany and Italy.
In 1908, however, it took a step that immediately brought it into the center of world politics. In that year the annexation of Bosnia-Herzegovina was announced, although for many years previous the Turkish suzerainty over these two provinces had been less than nominal. As this was followed immediately by a declaration of independence on the part of Bulgaria, the jealousy of Serbia was aroused. But both the difficulties with this country and with Turkey about the annexation were finally adjusted, mainly through the strong support which Germany gave to its ally and in 1909 all of the powers recognized the annexation.
Once more Austria-Hungary withdrew from the international concert and devoted itself to its internal difficulties which seemed to increase in frequency and violence as the years passed by. It was not until the summer of 1912 that it again became active in connection with foreign politics. Then, when the Balkan question had become acute, the Austrian Foreign Minister, Count Berchtold, suggested to the other powers that they combine for the purpose of settling the Balkan disputes. The suggestion was accepted and although it did not succeed in avoiding war between the different Balkan States themselves, it, at least, localized this war and kept the rest of Europe out of it.