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.
Pope Leo VII
As pope, Leo VII reigned for only three years. Most of his bulls were grants of privilege to monasteries, especially including the Abbey of Cluny. "Pope Leo VII"] Leo called for Odo of Cluny to mediate between Alberic and Hugh of Italy, Alberic's stepfather, the King of Italy. Odo was successful in negotiating a truce after arranging a marriage between Hugh's daughter Alda and Alberic. Leo VII also appointed Frederick, Archbishop of Mainz, as a reformer in Germany. Leo allowed Frederick to drive out Jews that refused to be baptized, but he did not endorse the forced baptism of Jews.