Political map of Europe & the Mediterranean 21 December 1867 (North German Confederation): At the Peace of Prague (Peace of Prague (1866)), Austria accepted the end of its influence in Germany. Prussia promptly took control in the north, annexing states which had opposed it and forming a North German Confederation (North German Confederation) with the others. Encouraged by Austria's defeats, Hungarian nationalists demanded independence but agreed to partnership (Austro-Hungarian Compromise of 1867) in the revised Empire of Austria-Hungary (Austria-Hungary).