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.
Military history of Germany
During the Seven Years' War, Prussia fought on the side of Britain against Russia, Sweden, Austria, France, and Saxony. Frederick II of Prussia first invaded Saxony and defeated a Saxon army at Lobositz. Frederick would then invade Bohemia, the Prussians besieged Prague, but they were defeated at Kolin. Since Prussia looked vulnerable, the Austrians and French invaded Prussian lands. However, the French were defeated at Rossbach and the Austrians at Leuthen. In 1758, Frederick the Great tried to invade Austria, but he failed. Now, the Russians tried to defeat the Prussians, but the Prussians earned a pyrrhic victory at the Zorndorf. The Swedes, however, fought the Prussians to a draw at Tornow. However, Austria gained a victory against the Prussian main army at Hochkirch. In 1759, the Prussians lost at Kunersdorf to the combined Russians and Austrians. Berlin itself was taken for a few days in 1762, but its army could not be destroyed. However, the great alliance against Prussia broke up when Elizabeth of Russia died. It was from her death that a pro-Prussian ruler, Peter III would sue for peace. It was thanks to this "miracle of the House of Brandenburg" and to the unshakable will of Frederick that Prussia survived.