Austro-Italian ironclad arms race
Seizing upon the decline of the Regia Marina in the years immediately after the Battle of Lissa, Tegetthoff worked to continue the efforts of Archduke Ferdinand Max of expanding the ironclad fleet of the now Austro-Hungarian Navy. Tegetthoff found political allies in the Austro-Hungarian Minister of War Carl von Franck and retired Admiral Bernhard von Wüllerstorf-Urbair. Wüllerstorf's and Franck's primary arguments in favor of continuing with the ironclad program Austria had engaged in prior to the Seven Weeks War lay largely along economic grounds. The two believed that constructing new ironclad warships would rejuvenate Austria-Hungary's economy following the defeat at the hands of Prussia and Italy, and that such a fleet would help to open up new commercial opportunities in the Levant and the Middle East. These proposals would be shelved however while Austria continued to reel from the military defeats inflicted by Prussia, and several cabinet reshufflings by Emperor Franz Joseph I resulted in a government more interested in pursuing revenge against Prussia than constructing new ironclads, which would be of little use in a hypothetical second war with Prussia.
Austria–Prussia rivalry
Maria Theresa, still chafing under the loss of "the most beautiful gem of my crown", took the opportunity of the breathing space to implement several civil and military reforms within the Austrian lands, like the establishment of the Theresian Military Academy at Wiener Neustadt in 1751. Her capable state chancellor, Prince Wenzel Anton of Kaunitz, succeeded in the Diplomatic Revolution of 1756, allying with the former Habsburg nemesis France under King Louis XV in order to isolate Prussia. Frederick, however, had completed the "stately quadrille" by the conclusion of the Treaty of Westminster with Great Britain. He again took action by a preemptive war, invading Saxony and opening a Third Silesian War (and the wider Seven Years' War).