After the defeat of Austria at the hands of Prussia in the battle of Sedova, the Treaty of Prague was made on 23 August 1866. Bismarck adopted a soft approach towards Austria in this treaty so that Prussia could gain from Austria’s alliance in future.
The major outcomes of this treaty were :
- The German federation was dissolved.
- Prussia’s right was accepted on territories of Hamburg, Bleisweig and Holstein.
- A North German confederation was formed under the leadership of Prussia. Austria was not included in it.
- The territory of Venetia was given to Italy.
- The Southern states were left on their free will.