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.
War of the Bavarian Succession
Charles VII spent most of his three-year reign as emperor residing in Frankfurt while Maria Theresa battled Prussia for her patrimony in Bohemia and Hungary. Frederick could not secure Bohemia for Charles, but he did manage to push the Austrians out of Bavaria. For the last three months of his short reign, the gout-ridden Charles lived in Munich, where he died in January 1745. His son, Maximilian III Joseph (known as Max Joseph) inherited his father's electoral dignities but not his imperial ambition. With the Peace of Füssen (22 April 1745), Max Joseph promised to vote for Francis of Lorraine, Maria Theresa's husband, in the pending imperial election. He also acknowledged the Pragmatic Sanction. In return, he obtained the restitution of his family's electoral position and territories. For his subjects, his negotiations ended five years of warfare and brought a generation of peace and relative prosperity that began with his father's death in 1745 and ended with his own in 1777.