4. Rise of Prussia and Decline of Austria (1815-1866)

Background: The German Confederation Post-1815

Following the Congress of Vienna, the German Confederation was established, comprising 39 sovereign states. This period was pivotal in reshaping European political landscapes.

• Congress of Vienna: Intended to create a long-lasting peace by redrawing Europe's political map, balancing power to prevent future large-scale conflicts.

• German Confederation: A loose association of German-speaking states, dominated by Austria and Prussia, was formed to replace the Holy Roman Empire.

The Rise of Prussia

Economic and Administrative Modernization

• Economic Reforms: Introduction of the Zollverein, a customs union that facilitated trade by abolishing internal tariffs among its member states, notably excluding Austria, thus economically marginalising it.

• Administrative Reforms: Prussia streamlined its government, reduced bureaucracy, and improved its civil service. It also invested heavily in education, laying the foundation for a more educated workforce.

Military Reforms

• Reorganisation of the Army: Prussia reorganised its army, introducing new tactics and technologies, significantly improving its effectiveness.

• Military Training and Conscription: General conscription was introduced, ensuring a steady supply of trained soldiers. The military training focused on discipline and new battlefield strategies.

The Decline of Austria

Political and Diplomatic Challenges

• Failed Italian and Hungarian Revolutions: Austria's heavy-handed approach in suppressing nationalist movements in Italy and Hungary weakened its position.

• Diplomatic Isolation: Austria struggled to maintain its influence in European politics, often finding itself diplomatically isolated, especially after the Crimean War.

Economic Stagnation

• Lack of Industrialisation: Austria was slow to industrialise, which hindered its economic development.

• Non-participation in the Zollverein: Its decision not to join the Zollverein further isolated Austria economically.

The Zollverein and its Significance

Economic Integration

• Trade and Tariffs: It eliminated internal tariffs, fostering trade and economic unity.

• Industrial Growth: The Zollverein accelerated industrialisation in member states, particularly in Prussia.

Political Implications

• Prussian Leadership: It cemented Prussia's economic leadership, which translated into political influence.

• Austrian Exclusion: Austria's exclusion from the Zollverein weakened its economic and political position within the German Confederation.

Prussia's Diplomatic Maneuvers

Alliances and Treaties

• Aligning with Other Powers: Prussia aligned itself with other European powers to counterbalance Austrian influence, notably through alliances with Russia and France at different times.

• Neutralising Potential Threats: Prussia engaged diplomatically to prevent potential opposition, particularly from France and Russia, to its ambitions in Germany.

The Role of Bismarck

• Realpolitik: Bismarck’s pragmatic approach to politics, prioritising practical considerations over ideological ones, was instrumental in Prussia's rise.

• Wars of Unification: Bismarck orchestrated several wars, including the Danish War (1864), the Austro-Prussian War (1866), and the Franco-Prussian War (1870-71), to unify Germany under Prussian leadership.

Economic and Social Factors

Prussian Economic Growth

• Industrial Revolution: Prussia embraced the Industrial Revolution, which led to significant economic growth and increased its military and political power.

• Infrastructure Development: Investment in infrastructure, including railways, facilitated the movement of goods and troops, strengthening Prussia’s economic and military capabilities.

Austrian Economic Challenges

• Agrarian Economy: Austria's economy remained predominantly agrarian, which limited its growth and competitiveness.

• Ethnic Diversity and Unrest: Austria's diverse ethnic composition led to internal unrest and weakened its ability to respond effectively to external challenges.