Austro-Italian ironclad arms race
In the years after Ferdinand Max's departure from Austria, the Imperial Austrian Navy suffered under further political and budgetary constraints. In April 1864, it was proposed that the naval ministry, which the former Archduke had helped to establish, be disbanded. In January 1865, Emperor Franz Joseph I dissolved the ministry and the Imperial Austrian Navy was again placed under the jurisdiction of the Austrian Ministry of War. Under the 1865 budget, just 7,100,000 Florins were allocated towards naval expenses, but once more, none of the funds were designated for warship construction. In 1866, the naval budget grew slightly to 7,800,000 Florins, but for the third consecutive year there would be no funds for additional ironclads, or other warships. Thus, when the Seven Weeks War began in June 1866, the Imperial Austrian Navy would possess only ships which had been constructed during Ferdinand Max's tenure as "Oberkommandant der Marine".
Seven Years' War
Things were looking grim for Prussia now, with the Austrians mobilising to attack Prussian-controlled soil and a combined French and "Reichsarmee" (German states) army under Prince Soubise approaching from the west. The "Reichsarmee" was a collection of armies from the smaller German states that banded together to heed the appeal of the Holy Roman Emperor Franz I against Frederick. However, in November and December 1757, the whole situation in Germany was reversed. First, Frederick devastated Soubise's forces at the Battle of Rossbach on 5 November 1757 and then routed a vastly superior Austrian force at the Battle of Leuthen on 5 December 1757. Rossbach was the only battle between the French and the Prussians during the entire war. At Rossbach, the Prussians lost about 548 men killed while the Franco-German force under Soubise lost about 10,000 killed. Frederick always called Leuthen his greatest victory, an assessment shared by many at the time as the Austrian Army was considered to be a highly professional force. With these victories, Frederick once again established himself as Europe's premier general and his men as Europe's most accomplished soldiers. However, Frederick missed an opportunity to completely destroy the Austrian army at Leuthen; although depleted, it escaped back into Bohemia. He hoped the two smashing victories would bring Maria Theresa to the peace table, but she was determined not to negotiate until she had re-taken Silesia. Maria Theresa also improved the Austrians' command after Leuthen by replacing her incompetent brother-in-law, Charles of Lorraine, with von Daun, who was now a field marshal.