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.
Silesian Wars
Peace with Prussia allowed the Austrians and their British–Hanoverian allies to reverse the gains made by the French and Bavarians in 1741. By the summer of 1743, Austria recovered control of Bohemia, drove the French back across the Rhine into Alsace, and occupied Bavaria, exiling the Bavarian Elector Charles Albert (now crowned Holy Roman Emperor Charles VII) to Frankfurt. In September 1743, Britain, Austria and Savoy–Sardinia concluded a new alliance under the Treaty of Worms that led Frederick to suspect that Maria Theresa meant to retake Silesia as soon as the war elsewhere was concluded. So, on 7 August 1744 Prussia declared its intervention in the Austrian war on behalf of Bavarian Emperor Charles, and Frederick led soldiers across the frontier into Bohemia on 15 August 1744, beginning the Second Silesian War.