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At first it was a military settlement, and gradually the city rose around it, making it the focal point of the city's commercial life.Today this area corresponds to the Óbuda district within Budapest.Over 40 colleges and universities are located in Budapest, including the Eötvös Loránd University, Semmelweis University and Budapest University of Technology and Economics, which have been ranked among the top 500 in the world.Among Budapest's important museums and cultural institutions, the most visited art museum is the Museum of Fine Arts, which is noted for one of the largest collections of all periods of European art and comprises more than 100,000 pieces.1867 was the year of Reconciliation that brought about the birth of Austria-Hungary.

In 1920 the Treaty of Trianon partitioned the country, and as a result, Hungary lost over two-thirds of its territory, and about two-thirds of its inhabitants, including 3.3 million out of 15 million ethnic Hungarians.).

Following the siezure of Hungary from Nazi Germany by the Red Army, Soviet military occupation ensued, which ended only in 1991.

The Soviets exerted significant influence on Hungarian political affairs.

Budapest is both a city and county, and forms the centre of the Budapest metropolitan area, which has an area of 7,626 square kilometres (2,944 square miles) and a population of 3,303,786, comprising 33 percent of the population of Hungary.

The city is home to the 2nd largest stock exchange by market capitalization in Central and Eastern Europe, the Budapest Stock Exchange and its business district hosts the headquarters of the largest national and international banks and companies.

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From 24 December 1944 to 13 February 1945, the city was besieged during the Battle of Budapest.

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