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.
Seven Years' War
The Treaty of Hubertusburg, between Austria, Prussia, and Saxony, was signed on 15 February 1763, at a hunting lodge between Dresden and Leipzig. Negotiations had started there on 31 December 1762. Frederick, who had considered ceding East Prussia to Russia if Peter III helped him secure Saxony, finally insisted on excluding Russia (in fact, no longer a belligerent) from the negotiations. At the same time, he refused to evacuate Saxony until its elector had renounced any claim to reparation. The Austrians wanted at least to retain Glatz, which they had in fact reconquered, but Frederick would not allow it. The treaty simply restored the status quo of 1748, with Silesia and Glatz reverting to Frederick and Saxony to its own elector. The only concession that Prussia made to Austria was to consent to the election of Archduke Joseph as Holy Roman emperor. Saxony emerged from the war weakened and bankrupt; despite losing no territory, Saxony had essentially been a battleground between Prussia and Austria throughout the conflict, with many of its' towns and cities (including the capital of Dresden) damaged by bombardment and looting.