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In order to prevent "unnecessary bitterness of feeling or desire for revenge" and forestall
intervention by France or Russia, Bismarck pushed King William I of Prussia to make peace with
the Austrians rapidly, rather than continue the war in hopes of further gains. [23] William had
"planned to install both the crown prince of Hanover and the nephew of the elector of Hesse as
titular grand dukes in small territorial residuals of their dynastic inheritance" due to opposition in
the government cabinet, including Crown Prince Frederick to the annexation of several German
states.[20] The Austrians accepted mediation from France's Napoleon III. The Peace of Prague on
23 August 1866 resulted in the dissolution of the German Confederation, Prussian annexation of
many of Austria’s former allies, and the permanent exclusion of Austria from German affairs. This
left Prussia free to form the North German Confederation the next year, incorporating all the
German states north of the Main River. Prussia chose not to seek Austrian territory for itself, and
this made it possible for Prussia and Austria to ally in the future, since Austria felt threatened
more by Italian and Pan-Slavic irredentism than by Prussia. The war left Prussia dominant in
German politics (since Austria was now excluded from Germany and no longer the top German
power), and German nationalism would encourage the remaining independent states to ally with
Prussia in the Franco-Prussian War in 1870, and then to accede to the crowning of King William
of Prussia as German Emperor in 1871. The united German states would become one of the
most influential of all the European powers.
For the defeated parties[edit]
In addition to war reparations, the following territorial changes took place:
The North German Confederation (red), the South German states (golden) and the exposed Alsace-
Lorraine (paler) after the war
The war meant the end of the German Confederation. Those states who remained neutral or
passive during the conflict took different actions after the Prague treaty: