Holy Roman Empire

Franz had no choice but to flip the table. Although Austria had significant influence within the German Federal Empire, the central government, led by Hanover, was still more pro-British.

From the perspective of the German federal government, aligning with Britain and relying on British power to guarantee their independence clearly served the interests of the ruling class better.

In contrast, the Austrian government constantly talked about unifying the German region, making it difficult for them to forge closer ties.

This concern mainly affected the larger states, but for most of the smaller ones, it wasn’t an issue. They had no problem following Austria since they were already in a subordinate position anyway.

Due to the influence of nationalism, most of the small states in the German region were more inclined toward a return to the Holy Roman Empire, with dreams of becoming a major power.

In terms of strength, once the German region united, a European hegemon would emerge, and this hegemon could very well become a global power.

Hegemony isn’t just a title as it comes with hidden benefits. The growth of nationalism in the German region was not only supported by Austria but also by many local capitalists and nobles who contributed greatly.

Aside from patriotism, their main motivation was profit. A hegemon would provide capitalists with larger markets and bring honor and wealth to the nobility.

Although Austria had many supporters, most were outside the central government’s sphere of influence or scattered throughout the smaller states, making it difficult to sway the central government’s decisions.

These people supported the unification of the German region because, in a sense, they wanted to reshuffle the deck, using Austria to reorganize power and interests.

In Franz’s view, most of these people were opportunists. They could wave flags and cheer, and they had no problem cooperating with Austrian rule locally, but there was no way they could be relied upon to fight for the cause.

Otherwise, the German federal government would have been overthrown long ago. Franz had seen the power of nationalism firsthand. If these people dared to lead, the German federal government would be replaced in an instant.

By flipping the table now, Franz was not only warning the German federal government not to play with fire but also sending a message to these opportunists. He wanted to show them through action that without Austria, the German Federal Empire would be a small, powerless state.

This was to prevent these individuals from getting carried away after the annexation of the Rhineland, and being swayed by the British into pursuing a policy of “de-Germanization.”

These areas were not like Switzerland, Belgium, or the Netherlands, which had previously broken away from the Holy Roman Empire.

Switzerland was a mountainous region with little to offer, yet it had a fiercely independent people. Franz naturally had no interest in such a place.

Belgium’s geographical location was important, serving as a buffer state between France and the German region. Whoever had designs on Belgium would push it toward the other side.

As for the Netherlands, they had long distanced themselves from the German region, gaining independence early and forming their own cultural traditions.

These three countries had the means for independence, but the fragmented German Federal Empire did not. Wedged between the powerful nations of France, Austria, and Prussia, their poor strategic position meant their future would not be easy.

Once the balance of power in Europe was broken, the tragedy of the German Federal Empire would be inevitable. Before that happened, Franz didn’t mind letting them enjoy a few more carefree days.

After all, without experiencing the harsh realities of the world, how would they come to understand the importance of a strong homeland?

...

In Berlin, ever since learning that Britain and Austria intended to give the Rhineland to the German Federal Empire, William I was furious.

It was truly outrageous. Even though the Rhineland was a distant enclave, with the French nearby and the risk of losing it at any time, it was still Prussian territory.

Thinking back to the past, after the Napoleonic Wars ended, Austria forced the Rhineland onto Prussia at the Congress of Vienna, making them act as gatekeepers against France.

The painful memory of his father, Frederick William III, accepting this fate came to William I’s mind. He hadn’t expected that in his own lifetime, he would face the same situation.

On the surface, acquiring more land, even if it was a distant enclave, didn’t seem like a humiliation.

But in reality, the Congress of Vienna had been a postwar division of spoils after the victory over France. By taking the Rhineland, Prussia had lost its chance to fully annex Saxony.

At that time, the Rhineland was just a piece of wasteland, constantly threatened by the French, and couldn’t compare to the fertile land at their doorstep.

Now, after waiting so long for the Industrial Age to arrive and turn that wasteland into a prized region, it was once again about to change hands. How could William I possibly accept this?

Previously, promises had been made to the French, but William I knew those were just empty promises, as Britain and Austria would never allow France to annex the Rhineland. The plan could be reversed later.

But now, things had taken a turn for the worse. Britain and Austria were even more extreme than he had imagined, preparing to take the Rhineland away from Prussia entirely.

William I suppressed his anger and asked, “Britain and Austria want to take the Rhineland from us. What do you all think we should do now?”

Prime Minister Moltke slammed the table and said, “This is impossible! The Rhineland is our legitimate territory, confirmed by the Congress of Vienna and acknowledged by all European nations. On what grounds do Britain and Austria think they can take it from us?

We cannot make any concessions under any circumstances. How will we explain it to our people if we agree to such a humiliating condition? As long as we refuse, what can Britain and Austria do? Send troops to help the German Federal Empire seize it?”

Finance Minister Gormann added, “It’s not that simple. While Britain and Austria may not send troops to forcibly take the Rhineland, they can still prevent us from forming a unified kingdom with Poland.

Word from London is that Britain and Austria have already reached an agreement: if we refuse this deal, they will refuse to recognize the current Polish election for the throne.

If we attempt to annex Poland by force, Britain and Austria will rally other European nations to impose an embargo on us. The British government is already preparing to demand early repayment of debts. Given our financial situation, I fear…”

Sending troops? That wouldn’t even be necessary. Just an embargo would be enough to cripple Prussia. And if Britain demands early repayment of debts, they would be in even worse trouble.

Make no mistake, within a month, Prussia would face an economic crisis—one of catastrophic proportions.

Prime Minister Moltke retorted, “If the British demand early debt repayment, we can declare bankruptcy and default on those debts. It would hurt both sides and no one will come out of it well.

As for the embargo, it’s easier said than done. In reality, enforcing it would be nearly impossible. Britain and Austria don’t control the entire European continent. If they stop trading with us, other countries will step in.

Besides, such heavy-handed government intervention in free trade will face resistance from their own capitalists.”

Finance Minister Gormann smiled bitterly and explained, “Whether the capitalists agree or not, Britain and Austria can still enforce the embargo.

It doesn’t require the participation of every nation. Most of our trade—about 66.4% of our total imports and exports—is with Britain and Austria.

If they impose a blockade, over half the world’s ports will be closed to us. Our trade routes to Africa, India, and Southeast Asia will be completely cut off, and even our few colonies will lose contact with the mainland.

As for the Americas…”

These were harsh realities. Britain and Austria, together with their colonies, accounted for 58% of the global economy, 68% of the world’s industrial output, and 75% of global import-export trade.

The combined land area of their colonies made up over a third of the Earth’s surface. With so many ports controlled by these two powers, engaging in overseas trade without passing through them was practically impossible.