Austria brought the continuing dispute over Holstein before the German diet and also decided to convene the Holstein diet. Prussia, declaring that the Gastein Convention had thereby been nullified, invaded Holstein. When the German diet responded by voting for a partial mobilization against Prussia, Bismarck declared that the German Confederation was ended. Thus this may be considered a Third Schleswig War. Hostilities broke out on 14 June as the Austro-Prussian War (June–August 1866), in which Prussia and the north German states faced not only Austria but much of the rest of Germany, especially the southern states. Three days later Italy declared war on Austria in the Third Italian War of Independence, Italy now being Prussia's ally.
This was a first step towards the establishment of a separate Cisleithanian legislature, on the other hand the more limited role of the diets in the February Patent, compared to the October Diploma, angered the champions of regionalism. The Reichsrat was dominated by liberals, who were to be the dominant political force for the next two decades. The Danish question (1864–66) The Prussian lion circling the Austrian elephant. Adolph Menzel, 1846 Prussia and Denmark had already fought one war in 1848–51 over the territories that lined their common border, Schleswig-Holstein which resulted in Denmark retaining them. By 1864 Austria was at war again, this time allying itself with Prussia against Denmark in the Second Schleswig War, which although successful this time, turned out to be Austria's last military victory.
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The war concluded with the Treaty of Vienna by which Denmark ceded the territories. The following year the Gastein Convention resolved the control of the new territories, Holstein being allocated to Austria, after initial conflicts between the allies. However this did little to ease the Austria–Prussia rivalry over the German question. The ongoing efforts by Otto von Bismarck, the Prussian Minister President, to revoke the agreement and wrest control of the territories would soon lead to all out conflict between the two powers and achieve the desired weakening of Austria's position in central Europe. The Hungarian question From the 1848 revolution, in which much of the Hungarian aristocracy had participated, Hungary remained restless, restoration of the constitution and de-throne the House of Habsburg, opposing the centralist trials of Vienna and refusing to pay taxes.
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Ernest the Iron (1402–1424) took Inner Austria, while Frederick IV of the Empty Pockets (1402–1439) took Further Austria. Once William died in 1406, this took formal effect with two separate ducal lines, the Elder Ernestine Line and Junior Tyrolean Line respectively. Ernestine line (Inner Austria 1406–1457) The Ernestine line consisted of Ernest and a joint rule by two of his sons upon his death in 1424, Albert VI the Prodigal (1457–1463) and Frederick V the Peaceful (1457–1493).
Emperor Franz Joseph traveled to Budapest in June 1865 and made a few concessions, such as abolishing the military jurisdiction, and granting an amnesty to the press. However these fell far short of the demands of the Hungarian liberals whose minimal demands were restoration of the constitution and the emperor's separate coronation as King of Hungary. Chief among these were Gyula Andrássy and Ferenc Deák, who endeavoured to improve their influence at the court in Vienna.
 In January 1866 a delegation of the Hungarian parliament traveled to Vienna to invite the imperial family to make an official visit to Hungary, which they did, at some length from January to March. Austro-Prussian War (1866) While Andrássy was making frequent visits to Vienna from Budapest during early 1866, relations with Prussia were deteriorating. There was talk of war. Prussia had signed a secret treaty with the relatively new Kingdom of Italy on 8 April, while Austria concluded one with France on 12 June, in exchange for Venetia. While the motives for the war, Prussian masterplan or opportunism, are disputed, the outcome was a radical re-alignment of power in Central Europe.
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g., Italy, Croatia, Slovenia and Czechia. Within Austria there are regionally and temporally varying affinities to adjacent countries.  Overview Human habitation of the current territory of Austria can be traced back to the first farming communities of the early Stone Age (Paleolithic era). In the late Iron Age it was occupied by people of the Hallstatt Celtic culture (c. 800 BC), one of the first Celtic cultures besides the La Tène culture in France. They first organized as a Celtic kingdom referred to by the Romans as Noricum, dating from c. 800 to 400 BC. At the end of the 1st century BC, the lands south of the Danube became part of the Roman Empire, and were incorporated as the Province of Noricum around 40 AD. The most important Roman settlement was at Carnuntum, which can still be visited today as an excavation site.
By the Edict of Worms (Wormser Vertrag) of 28 April 1521, the Emperor Charles V (Archduke of Austria 1519–1521) split the dynasty, bestowing the hereditary Austrian lands (Österreichische Länder) on his brother, Ferdinand I (1521–1564) and the first central administrative structures were established. By 1526 Ferdinand had also inherited the kingdoms of Bohemia, and Hungary after the Battle of Mohács which partitioned the latter. However the Ottoman Empire now lay directly adjacent to the Austrian lands.
 The resulting order was referred to as the Concert of Europe, which would now meet regularly to resolve outstanding differences. In addition to redrawing the political map, it established spheres of influence. Achieving the presidency of this new entity was Austria's greatest gain from the Congress. What the Congress could not do was to recover the old order or ancien régime on which Austrian and Habsburg authority had rested. In the new order, a Holy Alliance was created between Austria, Russia and Prussia. This was subsequently enlarged to include most Europea nations. Notable exceptions were Great Britain, wary of Metternich's strategy of repressive interventionism, and the Ottoman Empire. In the redrawing of the European map, Austrian gains were modest compared to Russia and Prussia, reflecting its relatively weak negotiating position.
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To meet this coalition, Rudolph formed an alliance with King Ladislaus IV of Hungary and gave additional privileges to the Vienna citizens. On 26 August 1278, the rival armies met at the Battle on the Marchfeld, northeast of Vienna, where Ottokar was defeated and killed. The Margraviate of Moravia was subdued and its government entrusted to Rudolph's representatives, leaving Ottokar's widow Kunigunda of Slavonia, in control of only the province surrounding Prague, while the young Wenceslaus II was again betrothed to Judith. Rudolf was thus able to assume sole control over Austria, as Duke of Austria and Styria (1278–1282) which remained under Habsburg rule for over six centuries, until 1918.
 Hungary had little support in the court at Vienna which was strongly Bohemian and considered the Hungarians as revolutionaries. From the loss of the Italian territories in 1859, the Hungarian question became more prominent. Hungary was negotiating with foreign powers to support it, and most significantly with Prussia. Therefore, Hungary represented a threat to Austria in any opposition to Prussia within the German Confederation over the German Question. Therefore, cautious discussions over concessions, referred to as Conciliation by the Hungarians,  started to take place.
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