As late as 1903 the Italian advantage in naval arms appeared so large that the difficulty of Austria-Hungary catching up to the Italian Navy, much less surpassing it, appeared insurmountable. Events changed, however, with the revolution in naval technology created by the launch of the British in 1906 and the Anglo-German naval arms race that followed. The value of pre-dreadnought battleships declined rapidly and numerous ships in European navies were rendered obsolete, giving Austria-Hungary an opportunity to make up for past neglect in naval affairs. With an improved financial situation and budget from the Austro-Hungarian Compromise of 1867, and with Archduke Ferdinand and Admiral Montecuccoli both supportive of constructing a new class of modern battleships, the stage was set for the development of Austria-Hungary's first and only class of dreadnought battleships.