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.
Wars and battles involving Prussia
The Seven Years' War, fought between Prussia and Great Britain on one side and Austria, France, Sweden(1757–62) and Russia on the other, involved all the great European powers of the time. In the Third Silesian War (the Austrian-Prussian theatre), Austria's goal was the reconquest of Silesia, but Frederick II pre-empted his enemies, and on 29 August 1756 crossed the border of Saxony without a prior declaration of war. Military success alternated and the Prussian army faced defeat in the end, in spite of major victories. On 15 February 1763 the Peace of Hubertusburg was signed between Prussia and its opponents. The status quo ante was restored. The war established Prussia as the fifth major power in Europe, but Prussia lost 180,000 soldiers during the war.