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.
Seven Years' War
In the attempt to satisfy Austria at the time, Britain gave their electoral vote in Hanover for the candidacy of Maria Theresa's son, Joseph II, as the Holy Roman Emperor, much to the dismay of Frederick and Prussia. Not only that, Britain would soon join the Austro-Russian alliance, but complications arose. Britain's basic framework for the alliance itself was to protect Hanover's interests against France. At the same time, Kaunitz kept approaching the French in the hope of establishing just such an alliance with Austria. Not only that, France had no intention to ally with Russia, who, years earlier, had meddled in France's affairs during Austria's succession war. France also saw the dismemberment of Prussia as threatening to the stability of Central Europe.