1867       


The remaining North and Middle German states joined Prussia in the North German Confederation. Only the northern part of the Grandduchy of Hesse-Rhine, that had lost some territory to Prussia, would join the North German Confederation. The Confederation is the direct predecessor of the German Realm (1871-1945).
Austria now turned its focus away from the rest of Germany and conducted an agreement or "Ausgleich" with its major non German minority, the Hungarians. Their ancient Kingdom, that had ceased to exist as a seperate state when the Empire of Austria was formed in 1804, was now restored as independant, under the sovereignty of the Austrian Emperor in a Personal and State Union with Austria in which the two parts would be equal partners. The Emperor of Austria would always be the same person as the King of Hungary. This Dual Monarchy would survive until 1918.

With its Austrian rival defeated, Bismarck now turned his eyes towards France that was ruled by Napoleons nephew as Emperor Napoleon III. The candidacy for the vacant Spanish trone of a German Prince from a Catholic line of the House of Hohenzollern, ignited conflict with France. Although the candidacy of the Prince was withdrawn, further demands by Napoleon III, asking for a guarantee that there would be no more candidacies like this one in the future was staged in a way to provoke an insult to the King of Prussia. The Franco-Prussian war of 1870 was the result.