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.
Reichskrieg
During the First Silesian War (1740–42), the Emperor Charles VII had sought a "Reichsexekution" against Prussia, but the diet refused. The war over Silesia was regarded as a dynastic conflict between Prussia and Austria in which the empire itself should not intervene. During his brief reign, the Emperor Charles VII (1742–45) sought a declaration of "Reichskrieg" against Austria, although the latter had not breached imperial law and there was therefore no justification. The pro-Austrian elector of Mainz, Johann Friedrich Karl von Ostein, tabled a formal protest in the Imperial Diet on 23 September 1743 alleging that the election of Charles VII had been irregular. In such a situation, there was no chance of the diet agreeing to the emperor's proposal for a "Reichskrieg" against Austria. The Second Silesian War (1744–45) thus also went by without any imperial action. The Third Silesian War (1756–63), however, became wrapped in a global war of great power politics, the Seven Years' War, and Prussia could not escape an imperial action.