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.
Austria–Prussia rivalry
The rivalry is largely held to have begun when upon the death of the Habsburg Emperor Charles VI in 1740, King Frederick the Great of Prussia launched an invasion of Austrian-controlled Silesia, starting the First Silesian War (of three Silesian Wars to come) against Maria Theresa. Frederick had broken his promise to acknowledge the Pragmatic Sanction of 1713 and the indivisibility of the Habsburg territories, whereby he sparked off the pan–European War of the Austrian Succession. He decisively defeated the Austrian troops at the 1742 Battle of Chotusitz, whereafter Maria Theresa, by the Treaties of Breslau and Berlin, had to cede the bulk of the Silesian lands to Prussia.
At the time, Austria still claimed the mantle of the Empire and was the chief force of the disunited German states. Until 1745, Maria Theresa was able to regain the Imperial crown from her Wittelsbach rival Charles VII by occupying his Bavarian lands, but, despite her Quadruple Alliance with Great Britain, the Dutch Republic and Saxony failed to recapture Silesia: The Second Silesian War started with Frederick's invasion into Bohemia in 1744 and after the Prussian victory at the 1745 Battle of Kesselsdorf, by the Treaty of Dresden the "status quo ante bellum" was confirmed: Frederick kept Silesia but finally acknowledged the accession of Maria Theresa's husband, Emperor Francis I. The terms were again confirmed by the final Peace of Aix-la-Chapelle in 1748.