Under the Compromise, the lands of the House of Habsburg were reorganized as a real union between the Austrian Empire and the Kingdom of Hungary, headed by a single monarch who reigned as Emperor of Austria in the Austrian half of the empire, and as King of Hungary in Kingdom of Hungary. The Cisleithanian (Austrian) and Transleithanian (Hungarian) states were governed by separate parliaments and prime ministers. The two countries conducted unified foreign diplomatic and defense policies. For these purposes, "common" ministries of foreign affairs and defence were maintained under the monarch's direct authority, as was a third ministry responsible only for financing the two "common" portfolios.