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.
Seven Years' War
The War of the Austrian Succession had seen the belligerents aligned on a time-honoured basis. France's traditional enemies, Great Britain and Austria, had coalesced just as they had done against Louis XIV. Prussia, the leading anti-Austrian state in Germany, had been supported by France. Neither group, however, found much reason to be satisfied with its partnership: British subsidies to Austria produced nothing of much help to the British, while the British military effort had not saved Silesia for Austria. Prussia, having secured Silesia, came to terms with Austria in disregard of French interests. Even so, France concluded a defensive alliance with Prussia in 1747, and the maintenance of the Anglo-Austrian alignment after 1748 was deemed essential by the Duke of Newcastle, British secretary of state in the ministry of his brother Henry Pelham. The collapse of that system and the aligning of France with Austria and of Great Britain with Prussia constituted what is known as the "diplomatic revolution" or the "reversal of alliances."