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.
Albert VII, Archduke of Austria
Albert VII () (13 November 1559 – 13 July 1621) was the ruling Archduke of Austria for a few months in 1619 and, jointly with his wife, Isabella Clara Eugenia, sovereign of the Habsburg Netherlands between 1598 and 1621. Prior to this, he had been a cardinal, archbishop of Toledo, viceroy of Portugal and Governor General of the Habsburg Netherlands. He succeeded his brother Matthias as reigning archduke of Lower and Upper Austria, but abdicated in favor of Ferdinand II the same year, making it the shortest (and often ignored) reign in Austrian history.