"Overshadowed in Germany by the Hohenzollerns, the Habsburgs began to exert an adverse influence over European affairs." Is this a fair description of Austria's role in Europe after 1866 up to the outbreak of World War One ?

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“Overshadowed in Germany by the Hohenzollerns, the Habsburgs began to exert an adverse influence over European affairs.”  Is this a fair description of Austria’s role in Europe after 1866 up to the outbreak of World War One ?

Austria had in 1866, as a consequence of its unsuccessful war against Prussia, lost its hegemony over the German world.  She had to recognize the new North German Confederation and the separate existence of the south German states.  Worse than that, Austria had to give up all her rights to control the minorities within her Empire.  Following the Ausgleich in 1867, further concessions were made to her other subject nationalities as well.  Deprived of Africa and Asia too, Austria then became increasingly entangled in her Empire and the Balkans in order ‘to prove that she was still alive.’

In 1879, the Dual alliance was signed with Germany.  By Article I each power agreed to assist the other if attacked by Russia.  Article II bound them to observe benevolent neutrality if her ally was attacked by a power other than Russia.  This secret alliance, though from which Germany had little to gain, bore much significance to Austria—in the way that it re-lifted the apparently collapsing Habsburg Monarchy to a world power status again.  The alliance secured her of German friendship, emboldened her to take an active part in European affairs and to stand against Russians in the Near Eastern rivalry.  

In 1882, Italy joined the Dual alliance and thus converting it into the Triple alliance, which was removed in February, 1887.  By this, Austria and Germany hoped to prevent Italy from attacking the Dual Monarchy in the rear during a war with Russia and also to bind Italy to their side, deprived France of another possible ally.  Whether this plan worked or not still remained to be seen.  But meanwhile, the alliance seemed to end Austro-Italian hostility and differences and strengthen the Habsburgs much more than before.

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Apart from these two alliances, Austria concluded also with both Germany and Russia, the Dreikaiserbund of 1872, by which the old Holy alliance was revived.  A series of bilateral military agreements were signed in 1873.  Austria, Russia and Germany each promised to aid one another in the event of an unprovoked attack on any of them.  The arrangements were renewed in 1884, but lapsed in 1887, which proved that in spite of Bismarck’s strenuous efforts, it was impossible for these two powers to co-operate.  And the most important reason for the termination of Austro-Russian friendship was their rivalry in ...

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