I will allow myself to renew this topic. IMO it will be that:
Franz Joseph died in 1909 on pneumonia, FF became emperor. After that he started negotiations about new constitution. To his allies against Hungarians use Austro-Slavists, He decided to make federal monarchy and change Popovici Project in more conservative way. Crushed Mayar ressistance by using miniorities and police and created United States of Habsburg/Danubian* Empire, with central government and Reichsrat modeled on cisleithanian which will deal with:
- War and foreign affairs
- Federal Police (intelligence, counterintelligence and ect.)
- Economy
- Infrastructure
- Post and telegraphs
- Justice
- Tariffs and taxes
Rest issues will be case of:
- Archduchy of Austria consisted by: Austrian Littoral, Princely County of Tyrol, Voralberg, Upper and Lower Austria, Duchies of Carinthia, Styria and Salzburg (with Italian autonomy in southern Tyrol)
- Kingdom of Bohemia consisted by: Kingdom of Bohemia, Margraviate of Moravia and Austrian Silesia (with German autonomy in Sudetenland)
- Kingdom of Illyria consisted by: Bosnia and Herzegovina, Duchy of Carniola, Kingdom of Dalmatia, Fiume and Kingdom of Croatia-Slavonia
- Kingdom of Hungary. Hungary proper with Slovakian autonomy
- Kingdom of Galicia and Lodomeria consisted by: Kingdom of Galicia and Lodomeria and Duchy of Bukovina with Rusyn and Romanian autonomy
To avoid war with Russia, during Balkan Wars and London negotiations FF was active which resulted in divide Albania by Serbia and Greece (OTL opposition of AH prevented that) and recognition of Russian influence on Balkans in exchange for Bosnia annexation and Empire borders. Because of alliance with Germany will push Vienna to war FF tried to made new alliance with GB (status quo/balance of powers alliance). How do you see that?
*I don’t know what will be beter or only Daunubian Empire.
Sounds great! However, keep in mind: the Emperor is going to remain Head of State and Head of Government. In fact, in a multi - ethnic state, such an arrangement is going to be necessary and would reflect the three pillars of the Habsburg State: Monarchy, Church, Army. These three were the glue that kept the very diverse parts of the Empire together.
Unless somehow you keep the Obrenovic family on the throne in Serbia I don't see how Vienna possibly could allow Serbia access to the Adriatic/Mediterranean as it would undermine long - term Austrian goals in the Balkans. Besides, dividing Albania between the Greeks and the Serbs will only guarantee unrest in the area as the Albanians resist Greek and Serbian nastiness. As far as the annexation of Bosnia, I believe Vienna could have annexed it as a matter of course and it would not have even been a big deal. What contributed to the furor in our timeline was the backroom deal between Izolvsky, the Russian Foreign Minister, and Aerenthal, the Austrian minister. Basically Russia would support Austria in absorbing Bosnia while Austria was supposed to support Russia in forcing the Turks to open the Straights to their warships. There was a great deal of opposition in Europe against this, and because there was so much commotion, Aerenthal chickened out and did a 180. He joined the other western powers in condemning Russian "aggression" which seriously poisoned relations between the two powers. This is what made the situation with Serbia in 1914 blow up.
As to the State's official name, in 1918 when Kaiser Karl undertook his goal of federalizing the State, he wanted to call the Monarchy "the Empire of Austria" as per the situation prior to 1867. Sadly, this could not come to pass!
But maybe it can in your timeline
I almost forgot - King George V was supposed to visit FF and Wilhelm II in 1914 in Austria for an "unofficial" visit, which would have included hunting and whatever else august lords of Europe did in those days. Perhaps after a bottle of Irish whiskey they could discuss a new alliance, no?