Arc 7The Balkan War Begins
Austria built its influence in the German states while expanding its economy and military, then used a crisis between Russia and the Ottoman Empire to pursue its own aims in the Danube basin. The arc ended with Russia and Austria dividing control of Moldavia and Wallachia as Russian forces advanced toward Bulgaria.
- Franz approved a secret German Unification Committee and later reached a treaty with Prussia, while Austria and Prussia blocked Britain’s plan for a Bavaria-led German state.
- Austria expanded railway investment and industry, raised its military budget, and began building reserves as Franz prepared for conflict.
- Franz approved the Tobacco and Alcohol Monopoly System to finance war and kept Austria’s ambitions in the Balkans concealed from other powers.
- After Louis-Napoleon Bonaparte seized power and became Emperor Napoleon III, Franz sought to exploit the dispute over the Holy Places while limiting Austria’s public commitments.
- When Russia declared war on the Ottoman Empire, Franz and his ministers chose to enter the Danube basin, and Austrian troops occupied Moldavia and Wallachia without resistance.
- Napoleon III urged Britain to support the Ottomans, while Russia and Austria signed the Balkan Treaty, transferring Moldavia and Wallachia to Austria in exchange for Russian passage and logistical support.
- Two hundred and fifty thousand Russian troops marched toward Bulgaria as Bulgarians prepared to welcome them and unrest spread among other Ottoman peoples.