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.
Franz Joseph I of Austria
Franz Joseph I or Francis Joseph I (Franz Joseph Karl; 18 August 1830 – 21 November 1916) was Emperor of Austria, King of Hungary, and monarch of many other states of the Austro-Hungarian Empire, from 2 December 1848 to his death. From 1 May 1850 to 24 August 1866 he was also President of the German Confederation. He was the longest-reigning Emperor of Austria and King of Hungary, as well as the third-longest-reigning monarch of any country in European history, after Louis XIV of France and Johann II of Liechtenstein.