Peace of Prague (1866)
The treaty was lenient towards the Austrian Empire. This was because Otto von Bismarck had persuaded Wilhelm I that keeping Austria as powerful would be better in the future for Prussia than harsh terms. Bismarck realized that without Austria, Prussia would be weakened against the rest of Europe. At first, Wilhelm I had wanted to go on to Vienna and annex Austria but Bismarck stopped him and even said he would resign or even throw himself out of the fourth-story window of Nikolsburg Castle. In the treaty, Austria lost Veneto to Italy. The Habsburgs were removed from German affairs (Kleindeutschland). The German Confederation was abolished.