SMS Szent István
Montecuccoli's plans for the construction of "Szent István" and her sister ships earned the approval of Emperor Franz Joseph I in January 1909, and by April plans for the design, construction, and financing for the battleships had been laid out. For a full year, the Austro-Hungarian Navy attempted to keep the looming construction of the first two battleships a state secret. This did not prevent rumors from circulating across Europe of two dreadnought battleships being constructed in Austria-Hungary. The French Naval Attaché in Vienna complained to Paris in 1910 of extensive secrecy within the Austro-Hungarian Navy, which manifested itself in several ways. Among these were a ban on photography in the Pola, future home port of "Szent István", and near-constant observation by the Austro-Hungarian police.
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.