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.
Seven Years' War
Between 10 and 17 October 1757, a Hungarian general, Count András Hadik, serving in the Austrian army, executed what may be the most famous hussar action in history. When the Prussian king, Frederick, was marching south with his powerful armies, the Hungarian general unexpectedly swung his force of 5,000, mostly hussars, around the Prussians and occupied part of their capital, Berlin, for one night. The city was spared for a negotiated ransom of 200,000 thalers. When Frederick heard about this humiliating occupation, he immediately sent a larger force to free the city. Hadik, however, left the city with his hussars and safely reached the Austrian lines. Subsequently, Hadik was promoted to the rank of marshal in the Austrian Army.