In the British Parliament, the Liberal Party's Reform Bill that sought to make adjustments to the franchise, failed by eleven votes, largely due to defections in their members. Earl Russell resigned as Prime Minister on this day and a Conservative Party government led by Earl Derby and Benjamin Disraeli replaced the Liberals, who had been in power throughout the years leading up to and during the American Civil War under Lord Palmerston and Earl Russell.  The Liberals returned to power in 1868 under William Gladstone. (By John Osborne) 

Italy's operations against Austria had come to an end with the Armistice of Cormons on August 12, 1866. The full peace treaty signed in Vienna on this day, with the help of the mediation of Napoleon III of France, saw the Austrian Empire's full recognition of the Kingdom of Italy and awarded the Italian-speaking province of Venetia to France. France then, on the positive verdict of a plebiscite, would transfer the province to Italian control.  Venetia voted overwhelmingly to join Italy and did so in October 1866. (By John Osborne) 

On July 22, 1866,  Prussia and Austria had agreed to an armistice, on Prussian terms.  The two main belligerents then negotiated the Peace of Prague which was signed in that city on this day.  The treaty was surprisingly lenient  to the heavily defeated Austria but it was now clear that the leadership of the German-speaking peoples of Europe was now firmly in the hands of Prussia. (By John Osborne) 

On July 22, 1866,  Prussia and Austria had agreed to an armistice, on Prussian terms.  Prussia's ally Italy continued its operations against Austria but without Prussian support was forced to accept a cease fire on this day at the Armistice of Cormons. The later Peace of Prague on August 23, 1866 confirmed the crushing Prussian victory over Austria while the Treaty of Vienna in October 1866 stripped the empire of  its Italian-speaking province of Venetia. (By John Osborne) 

After just over a month of fighting Prussia and Austria agreed to an armistice, on Prussian terms.  Prussia's ally Italy continued its operations against Austria but without Prussian support was forced to accept a cease fire on August 12, 1866. The later Peace of Prague on August 23, 1866 confirmed the crushing Prussian victory and ended Austria's ambitions to become the leader of the German-speaking peoples while the Treaty of Vienna in October 1866 stripped the empire of several of its Italian-speaking provinces.  (By John Osborne) 

Italy, allied with Prussia against Austria in hope of "redeeming" Italian-speaking Austrian territory, hoped to use its naval supremacy to threaten Italian-speaking Trieste. Italian naval units aimed to capture the Austrian naval station on the Adriatic island of Lissa.  An Austrian naval force arrived to relieve Lissa and the first major sea battle between ironclad steamships ensued.  Twelve Italian ironclads and seventeen unarmored ships engaged seven Austrian armored and seven unarmored ships in a six hour battle that resulted in the loss of two Italian ironclads and the withdrawal of their fleet.  (By John Osborne) 

The war between Prussia and Austria was only weeks old and the Prussian invasion of Bohemia had already resulted in heavy Austrian losses.  In the decisive battle of the war, fought in the present-day Czech Republic between the towns of Sadowa and Hradec Králové (then called Königgrätz), the demoralized Austrian armies were outmaneuvered and heavily defeated.  Sporadic fighting continued but less than three weeks later a cease fire was ordered.  At Königgrätz, the Austrians lost close to six thousand men killed, a cost three times that of the Prussians. (By John Osborne)

Italy, allied with Prussia against Austria in hope of "redeeming" Italian-speaking Austrian territory, had declared war four days before and invaded Venetia.  Outnumbered Austrian forces met the incursion near the small town of Custoza, southwest of Verona, and inflicted a heavy defeat, forcing the Italians back across the border.  The Italians lost more than eight thousand men, killed, wounded, and captured.  (By John Osborne)

With Prussia and Austria moving towards war in central Europe, Italy had sensed the opportunity to "redeem" Italian-speaking areas the Austrians now held, like Venetia and Trentino.  Accordingly, Italy and Prussia signed a military alliance in April 1866 and when war broke out, Italy declared war on Austria.  The war did not progress smoothly for the Italians but with Prussian victories and a favorable treaty in October 1866, Venetia and its capital city of Venice were incorporated into the Italian state and the conflict itself dubbed "The Third War of Italian Independence." (By John Osborne)

As Prussia and Austria drifted towards war, Prussia invaded Hanover, a potential ally for its rival, on June 16, 1866.  Hanover fought back, winning an emphatic victory over the Prussians at Langensalza in central Germany on June 27, 1866.  Despite this, the outnumbered Hanoverian army was out-maneuvered and King George V of Hanover was forced to surrender two days later, marking the end of the kingdom as an independent state. (By John Osborne)