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.
Albert VII, Archduke of Austria
Albert VII () (13 November 1559 – 13 July 1621) was the ruling Archduke of Austria for a few months in 1619 and, jointly with his wife, Isabella Clara Eugenia, sovereign of the Habsburg Netherlands between 1598 and 1621. Prior to this, he had been a cardinal, archbishop of Toledo, viceroy of Portugal and Governor General of the Habsburg Netherlands. He succeeded his brother Matthias as reigning archduke of Lower and Upper Austria, but abdicated in favor of Ferdinand II the same year, making it the shortest (and often ignored) reign in Austrian history.