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.
Prussia
By defeating the Austrian Army at the Battle of Mollwitz on 10 April 1741, Frederick succeeded in conquering Lower Silesia (the northwestern half of Silesia). In the next year, 1742, he conquered Upper Silesia (the southeastern half). Furthermore, in the third Silesian War (usually grouped with the Seven Years' War) Frederick won a victory over Austria at the Battle of Lobositz on 1 October 1756. In spite of some impressive victories afterward, his situation became far less comfortable the following years, as he failed in his attempts to knock Austria out of the war and was gradually reduced to a desperate defensive war. However, he never gave up and on 3 November 1760 the Prussian king won another battle, the hard-fought Battle of Torgau. Despite being several times on the verge of defeat Frederick, allied with Great Britain, Hanover and Hesse-Kassel, was finally able to hold the whole of Silesia against a coalition of Saxony, Austria, France and Russia. Voltaire, a close friend of the king, once described Frederick the Great's Prussia by saying "...it was Sparta in the morning, Athens in the afternoon." From these wars onwards the Austria–Prussia rivalry dominated German politics until 1866.