In 1815 the Congress of Vienna created the German Confederation, a group of states that included Prussia. The Congress granted Prussia important territories in Saxony and along the lower Rhine River. Prussia absorbed these regions into its efficient government and strong economy. Austria was Prussia's greatest German rival. An Austrian Habsburg had held the position of Holy Roman Emperor since the 1400s, giving Austria influence over the German states. Napoléon, however, had abolished the Holy Roman Empire, and the Congress of Vienna did not restore it.Moreover, Napoléon’s rule had inspired nationalism in the German states. German nationalism favored Prussia more than Austria. In Prussia almost everyone was German, Austria, although ruled by Germans, contained many other nationalities, such as Hungarians, Italians, And Slavs. After Prussia’s gains at the Congress of Vienna, Austria's focus moved south and east, toward Italy and the Balkans.
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