
During the early nineteenth century, Prussia was the only German state that could match the power and influence of the Austrian Empire. They were comparable in terms of size, population and wealth. Austria opposed the idea of German unification as it saw this as a threat to its own empire. Although they were a minority, there was a significant percentage of German-speakers in the empire. If they broke away to join a unified Germany, Austria would be smaller and weaker. To this end, Prussia and Austria were rivals.
Austria had lost key allies and was losing influence in Europe.
Prussia had become the most industrialised state in Germany. She was now a force to be reckoned with in Europe.
The man who did most to unite the German states was Otto Von Bismarck. He was the Prussian Chancellor and his main goal was to strengthen even further the position of Prussia in Europe. His primary aims were to:
It is important to note that there is much debate about Bismarck's aims to unify all German states under Prussian rule. Some historians argue that Bismarck only intended to unify the north German states but the strength of nationalist feelings after 1866 led to German unification under its own steam. According to this opinion, Bismarck actually reacted to political changes in other German states and capitalised on it rather than pursuing a master plan from the beginning to control all German states.
Bismarck wanted to build up Prussia's army in case his unification plans led to war. To do this he needed money. The Prussian parliament refused to allow money to be raised for Bismarck's military reforms.
Bismarck ignored the Reichstag and simply collected the money for army reforms through general taxation. He never bothered to obtain permission from the Reichstag.
To counter Prussia's growing influence, Austria tried to strengthen its position in the Bund. Since it was in theory the leading member of the Bund, an increase in the power of the Bund would strengthen Austria.
Bismarck had successfully ruined Austria's plans and was seen, ironically, as a defender of the Liberal nationalists.
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