Austro-Italian ironclad arms race
Austria's defeat in the Seven Weeks War forced Austria to determine a new set of foreign and domestic policies for the future, as Austria's interests since the days of the Holy Roman Empire had primarily been found in Italy and Germany. The Empire thus reformed itself into the Austria-Hungarian Empire following the adoption of the Austro-Hungarian Compromise of 1867 (German: "Ausgleich"), which re-established the sovereignty of the Kingdom of Hungary and placed Hungarians within the Empire on an equal footing with Austrians. Under the "Ausgleich", Emperor Franz Joseph I would be crowned as King of Hungary, while a separate parliament at Pest with powers to enact laws for the lands of the Holy Crown of Hungary would be established.
Charles VII, Holy Roman Emperor
Suffering severely from gout, Charles died at Nymphenburg Palace in January 1745. His brother Klemens August then again leaned towards Austria, and his son and successor Maximilian III Joseph made peace with Austria. With the Treaty of Füssen Austria recognized the legitimacy of Charles VII's election as Holy Roman Emperor.