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.
Erzherzog Ferdinand Max-class ironclad
Both ships were still under construction at the outbreak of the Seven Weeks' War in June 1866; the shipyard workers quickly completed the vessels, albeit with old smooth-bore guns instead of the Krupp rifled breech-loaders that were intended. "Erzherzog Ferdinand Max" served as the flagship of the Austrian fleet under Rear Admiral Wilhelm von Tegetthoff. The two ships saw action at the Battle of Lissa in July 1866, where "Erzherzog Ferdinand Max" rammed and sank the Italian ironclad . This proved to be the turning point of the engagement, forcing the Italian commander, Admiral Carlo Pellion di Persano to withdraw. "Habsburg", however, was not seriously engaged during the battle. Neither ship received significant damage in the battle, and they spent the rest of the war patrolling the Adriatic against a possible sortie from the Italian fleet. After the war, the ships were disarmed and laid up.