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.
Austria (Lombard)
Austria included the duchies of the north-eastern Lombard Kingdom, among them a prominent role was covered by:The duchies of Austria presented themselves as the defenders of the warrior and conqueror spirit of the Lombards. Here survived longer than in other places the old pagan cults and among the converts to Christianity, many were adherents of Arianism or adherents to the Schism of the Three Chapters. The Dukes of "Austria" pressed repeatedly on the king to take initiative, coming in several times to hatch conspiracies to overthrow the legitimate sovereign. This was the case in 662 of Grimoald (duke of Benevento, but a son of a Duke of Friuli), who managed to usurp the throne of Godepert and Perctarit despite the opposition of the Neustrians dukes of Asti and Turin; of Alahis, Duke of Trent, who in 688-689 was able to seize the throne of Pavia before being defeated by Cunipert; of Ansfrid of Friuli, who, having usurped the Duchy of Friuli, in turn attempted to seize the throne of Cunipert (who defeated and killed him in 698); of Rotarit, Duke of Bergamo, who after the death of Cunipert objected unsuccessfully to Raginpert first and then Aripert II (700-702). In the 8th century, however, the widespread conversion of the Lombards to Catholicism smoothed the opposition between "Austria" and "Neustria", thanks to a revived expansion at the expense of the Byzantine Empire with the Catholic and Neustrian Liutprand (king from 712).