Austro-Prussian War
The pretext for the conflict was found in the dispute between Prussia and Austria over the administration of Schleswig-Holstein, which the two of them had conquered from Denmark and agreed to jointly occupy at the end of the Second Schleswig War in 1864. When Austria brought the dispute before the German Diet and also decided to convene the Diet of Holstein, Prussia declared that the Gastein Convention had thereby been nullified and invaded Holstein. When the German Diet responded by voting for a partial mobilization against Prussia, Bismarck claimed that the German Confederation was ended. Crown Prince Frederick "was the only member of the Prussian Crown Council to uphold the rights of the Duke of Augustenburg and oppose the idea of a war with Austria which he described as "fratricide"". Although he supported unification and the restoration of the medieval empire, "Fritz could not accept that war was the right way to unite Germany."
Seven Years' War
Not only that, Austria now found herself estranged with the new developments within the empire itself. Beside the rise of Prussia, Augustus III, although ineffective, could muster an army not only from Saxony, but also Poland, since he was also the King of Poland as well as Elector of Saxony. Bavaria's growing power and independence was also apparent as it asserted more control on the deployment of its army, and managed to disengage from the war at its own will. Most importantly, with the now belligerent Hanover united personally under George III of Great Britain, It amassed a considerable power, and even brought Britain in, on future conflicts. This power dynamic was important to the future and the latter conflicts of the "Reich". The war also proved that Maria Theresa's reforms were still insufficient to compete with Prussia: unlike its enemy, the Austrians were almost bankrupt at the end of war. Hence, she dedicated the next two decades to the consolidation of her administration.