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.
Austro-Hungarian Navy
Prior to the Austro-Hungarian Compromise of 1867, the Navy was referred to as the Imperial Austrian Navy or simply the Austrian Navy. It saw action in the French Revolutionary Wars, the Napoleonic Wars, the Second Egyptian–Ottoman War, the First and Second Wars of Italian Independence, the Second Schleswig War, and the Seven Weeks War as well as the simultaneous Third War of Italian Independence. Following Austria's defeat to Prussia and Italy during the Seven Weeks War, the Empire reformed itself into a dual monarchy with the Habsburg monarch ruling as Emperor of Austria over the western and northern half of the country that was the Austrian Empire, and as King of Hungary over the Kingdom of Hungary. The Austro-Hungarian Compromise of 1867 also transformed the Austrian Navy into the Austro-Hungarian Navy. Largely neglected by the Empire in its early years, the k.u.k. Kriegsmarine grew throughout the late 19th and early 20th centuries to become one of the largest navies in the Adriatic and Mediterranean Seas. By 1914 the k.u.k. Kriegsmarine had a peacetime strength of 20,000 personnel.
The k.u.k. Kriegsmarine saw action in the Boxer Rebellion, and the first shots of World War I were fired by the Austrian monitor "Bodrog", which bombarded Belgrade on 29 July 1914, the day after Austria-Hungary declared war on Serbia.