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
Britain now threatened to withdraw its subsidies if Frederick did not consider offering concessions to secure peace. As the Prussian armies had dwindled to just 60,000 men and with Berlin itself about to come under siege, the survival of both Prussia and her King was severely threatened. Then on 5 January 1762 the Russian Empress Elizabeth died. Her Prussophile successor, Peter III, at once ended the Russian occupation of East Prussia and Pomerania (see: the Treaty of Saint Petersburg (1762)) and mediated Frederick's truce with Sweden. He also placed a corps of his own troops under Frederick's command. Frederick was then able to muster a larger army, of 120,000 men, and concentrate it against Austria. He drove them from much of Silesia, while his brother Henry won a victory in Saxony in the Battle of Freiberg (29 October 1762). At the same time, his Brunswick allies captured the key town of Göttingen and compounded this by taking Cassel.