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.
War of the Bavarian Succession
Count Karl-Wilhelm Finck von Finckenstein, Frederick the Great's prime minister, believed that any Austrian acquisition in Bavaria would shift the balance of power in the Holy Roman Empire, diminishing Prussia's influence. Prussia's recent gains had been hard-won: thirty years earlier, Frederick had engaged in protracted wars in Silesia and Bohemia, resulting in Prussia's annexation of most of Silesia, and now, with the economy and society modernizing under his direction, Prussia was emerging as a world power. In the Silesian Wars and the Seven Years' War, Frederick had earned a new, if grudging, respect for his kingdom's military and diplomatic prowess from the European powers of France, Russia, Britain and Austria. To protect Prussia's status and territory, Finck and Frederick constructed an alliance with the Electorate of Saxony, ostensibly to defend the rights of Charles II August, Duke of Zweibrücken.