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.
Seven Years' War
Between 10 and 17 October 1757, a Hungarian general, Count András Hadik, serving in the Austrian army, executed what may be the most famous hussar action in history. When the Prussian king, Frederick, was marching south with his powerful armies, the Hungarian general unexpectedly swung his force of 5,000, mostly hussars, around the Prussians and occupied part of their capital, Berlin, for one night. The city was spared for a negotiated ransom of 200,000 thalers. When Frederick heard about this humiliating occupation, he immediately sent a larger force to free the city. Hadik, however, left the city with his hussars and safely reached the Austrian lines. Subsequently, Hadik was promoted to the rank of marshal in the Austrian Army.