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.
Edward the Seventh
After a nearly 60-year wait, Bertie becomes King upon the death of his mother Queen Victoria, and announces that, contrary to the wish of his parents, who wished him to reign as King Albert Edward, he will reign as King Edward VII. There is much speculation as to whether he is up to the job. The King's nephew, the German Kaiser, proposes an Anglo-German alliance and the King supports it but several of his Ministers simply do not take him seriously. Although now Queen, Alix is having some trouble adjusting to their new life, refusing to live at Buckingham Palace and reluctant to leave Marlborough House, the home designated for the Prince of Wales, their son George. The King's sister, Vicky – the Kaiser's mother – is dying of cancer and soon after his ascension, he travels to Germany to see her; at Vicky's request, the King's secretary, Ponsonby, manages to smuggle her letters out of Germany. The King is frustrated when his coronation is postponed due to the Boer War. When it is finally scheduled, it must be postponed again as the King must undergo emergency surgery to remove his appendix just two days before the ceremony; the planned festivities for the populace proceed regardless. Finally, in a more modest ceremony, on August 9, 1902, Bertie and Alix are crowned.