Franz Joseph I of Austria
If Greater Germany was to prevail, the crown would necessarily have to go to Franz Joseph, who had no desire to cede it in the first place to anyone else. On the other hand, if the idea of a smaller Germany won out, the German crown could of course not possibly go the Emperor of Austria, but would naturally be offered to the head of the largest and most powerful German state outside of Austria—the King of Prussia. The contest between the two ideas, quickly developed into a contest between Austria and Prussia. After Prussia decisively won the Seven Weeks War, this question was solved; Austria lost no territories as long as they remained out of German affairs.
History of Austria
The dynasty was now en route to become a world power. The concept of "pietas austriacae" (the divine duty to rule had originated with Rudolph I, but was reformulated by Frederick as AEIOU, "Alles Erdreich ist Österreich untertan" or "Austriae est imperare orbi universo" (Austria's destiny is to rule the world), which came to symbolise Austrian power. However, not all events proceeded smoothly for Frederick. The Austrian-Hungarian War (1477–1488) resulted in the Hungarian king, Matthias Corvinus setting himself up in Vienna in 1485 till his death in 1490. Hungary occupied the entire Eastern Austria. Frederick therefore found himself with an itinerant court, predominantly in the Upper Austrian capital of Linz.