During the middle of the 19th Century growing nationalisms became more and more significant in European countries: the foundation of the Swiss Confederation in 1848, the failed ‘Revolution 1848/49′ in some German States (at that times still independent States), hopes for independence in Hungary, still part of the Habsburg Empire. Finally in the year 1867, the Habsburg Empire  ‘transformed’ into the “Double Monarchy Austria / Hungary” with its new Hungarian Capital city Budapest. The national unification of Italy happened in 1868, where in the year 1878 Bulgaria  became victorious (with the help of Russia) over the Ottoman Empire. Finally 500 years Ottoman Islamic rulings and oppressions came to an end in Bulgaria.

The politicians in Prussia – together with other German States – on one side, and Austria/Hungary on the other side, discussed two alternatives to form/unite a German speaking ‘national’ entity. One alternative was named as ‘Kleindeutsche Loesung’ (Prussia etc.). The other alternative was known as ‘Grossdeutsche Loesung’, comprising Prussia and other ‘German’ States, however also including Austria/Hungary in one Reich. These two options were the dominant political question for the political future middle of the 19th Century in Central Europe, also known as “Deutsche Frage“. 

Despite all these diplomatic efforts finally a war between Prussia (together with some northerly German States  such as Hannover, Sachsen, but also the south-westerly Baden) and Austria/Hungary (together with some southerly German States such as the Kingdom of Bavaria, the Kingdom of Wuerttemberg, Hessen and others). This short  “German War” began on the 15th June 1866 and ended on the 3rd July 1866 with the ‘Battle of Koenigsgrätz‘ (Bohemia, still Habsburg Empire). The Peace Treaty of Prague from 23 August 1866 marked de jure the end of this short war.

This war and this treaty finalized 500 years Habsburg Empire and – for the time being – also some germanised dreams for another “Grossdeutsches Reich”. 

After the ‘Battle of Koenigsgrätz‘ (year 1866) Prussia with its Chancellor Otto von Bismarck, became ‘the leader of the pack‘ and proceeded towards a ‘Kleindeutsche Loesung‘.

Five years later Prussia squeezed the northerly German States and the defeated southerly German States (in Koenigsgrätz) into a war against France (1870/1871), in which France experienced heavily losses. This ‘German‘ victory over France paved the way for the foundation of the “second Deutsches Reich”, proclaimed on 18th January 1871. This  ceremony  happened in the Palace of Versailles, France, and included also the crowning of a ‘German Kaiser’. Afterwards this newly formed ‘Germany’  became united under the rules and regulations by the Prussian Chancellor Otto von Bismarck. After 1871, he was “Chancellor of the German Empire” for nearly 20 years (until 18th March 1890). 

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