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.
Diplomatic Revolution
Maria Theresa's diplomats, after securing French neutrality, actively began to establish an anti-Prussian coalition. Austria's actions alerted Frederick II, who decided to strike first by invading Saxony, commencing the Seven Years' War (1756–1763). Frederick's actions were meant to scare Russia out of supporting Austria (the two countries had previously entered into a defensive alliance in 1746). However, by invading Saxony, Frederick had inflamed his enemies; Russia, under the direction of Empress Elizabeth, sent an additional 80,000 troops to Austria. One year after the signing of the First Treaty of Versailles, France and Austria signed a new offensive alliance, the Second Treaty of Versailles, on 1 May 1757.