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39 German states are loosely joined under the German Confederation which was controlled by Austria.
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Nationalism strengthened the Prussian empire whereas the contrasting ethnic groups in Austia-Hungary weakened the empire.
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Austria's control of the German region was threatened by Prussia and German unification began.
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Prussian parliment refused to fund Wilhelm's reforms that would strengthen the army. Wilhelm then appointed strongly conservative Junker, Otto von Bismarck as the prime minister. Bismarck was skilled in the politics of reality, or realpolitik.
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At a captured French palace, Wilhelm was given the title of kaiser and became second in power only to the Holy Roman Empire.