Franz Joseph I of Austria
If Greater Germany was to prevail, the crown would necessarily have to go to Franz Joseph, who had no desire to cede it in the first place to anyone else. On the other hand, if the idea of a smaller Germany won out, the German crown could of course not possibly go the Emperor of Austria, but would naturally be offered to the head of the largest and most powerful German state outside of Austria—the King of Prussia. The contest between the two ideas, quickly developed into a contest between Austria and Prussia. After Prussia decisively won the Seven Weeks War, this question was solved; Austria lost no territories as long as they remained out of German affairs.
18th-century history of Germany
In the War of the Austrian Succession (1740–48) Maria Theresa fought successfully for recognition of her succession to the throne. But in the Silesian Wars and in the Seven Years' War she had to cede 95 percent of Silesia to Frederick II, the Great, of Prussia. After the Peace of Hubertsburg in 1763 between Austria, Prussia and Saxony, Prussia became a European great power. This gave the start to the rivalry between Prussia and Austria for the leadership of Germany.