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.
War of the Austrian Succession
Prussia in 1740 was an emerging power, a small but well-organized state whose new king, Frederick II, wanted to unify the disparate and scattered holdings of his crown by gathering intervening lands into a unified, contiguous state. Prince Frederick was 28 years old when he ascended to the throne on 31 May 1740 upon the death of his father, Frederick William I. Although Prussia and Austria had been allies in the War of the Polish Succession (1733–1738), concluded only two years before, the interests of the two countries diverged when the Holy Roman Emperor, Charles VI, died on 20 October 1740. Neither Frederick nor his father had ever been fond of Austria and its various snubs against Prussia (such as offering them the duchies of Julich and Berg in return for an alliance, only to renege later).