Chapter 4: The Second and Third Attempts to Form the German Customs Union (Part I)

Metternich, trailing behind, looked at his two colleagues and sighed. Although these men were full of confidence, based on his understanding of the old Emperor, it was highly unlikely they would succeed this time either.

Yet, as an idealist, he was unwilling to give up, even if the hope was slim.

Metternich quite liked the title "Coachman of Europe." However, only after becoming the Chancellor of the Austrian Empire did he realize that directing the course of a nation was far less effortless than he had imagined.

In the past, as a diplomat, no matter how many people besieged or slandered him, he could skillfully defuse the situation with his words.

But as the Imperial Chancellor, without money, he couldn't even afford to hire a clerk, and his decrees couldn't even leave Vienna, let alone implement reforms.

Domestic relations in Austria were even more complex than the situation in Europe. Joining the German Customs Union (Zollverein) was clearly of a hundred benefits to the Austrian Empire with no drawbacks.

Yet, it met with fierce opposition—opposition far more intense than he had ever imagined.

Because abolishing tariffs would affect the income of certain people, and the entry of goods from the German regions into Austria would affect the profits of others; even an increase in the German population of Austria would threaten the status of some.

And Emperor Franz II was soft-hearted and afraid of taking responsibility. Thus, the final result was most likely to be doing nothing and maintaining the status quo.

Metternich knew very well that to maintain Austria's position as the head of the German Confederation, one must either join the German Customs Union or prevent its formation.

He had tried the latter, but failed.

Under Prussia's leadership, six North German states formed a customs union in 1826, abolishing tariffs between the participating states.

The following year, two major South German states, Bavaria and Württemberg, formed the South German Customs Union, which other South German states later joined to counter the Prussian-led union.

In 1828, Hanover, Saxony, Thuringia, and the Hanseatic League cities formed the Middle German Customs Union to oppose Prussia.

But who would turn their back on a full purse? These organizations, formed to oppose Prussia, crumbled and eventually became the cornerstone of the German Customs Union.

The establishment of the German Customs Union was good news for Prussia, and it was equally good news for Austria.

Although Austrian goods could not compare to those of Britain or France at the time, or even to those of the Belgians, Metternich was still confident when compared to Prussia.

As long as he could control the German Customs Union, he could not only alleviate Austria's strained economic situation but also strengthen his control over the German Confederation, thereby reviving the glory of a great power.

With money, Metternich could carry out reforms and realize his ambitions.

On the other side, Prince Windisch-Grätz and a group of powerful nobles had also arrived at the palace gates. They had only one goal for this trip: to prevent Austria from joining the German Customs Union. Because Bohemia was close to South Germany and Saxony, if tariffs were abolished, it would greatly affect the income of local nobles and officials.

Prince Esterházy even traveled overnight from Hungary with his men. He didn't come because of money. In his view, trading with Prussia would make it easier for him to buy Prussian luxury goods (amber, agate, pearls) at a lower cost.

But once Austria and Germany established closer ties, the German population in Austria would increase, which would very likely affect the power of the Hungarian nobility within the Empire—something he and his peers could not tolerate.

Bolstru, a banker and effectively a representative of the Rothschild family, opposed it because Salomon Rothschild wanted to maintain a permanent monopoly on the Austrian Empire's banking business.

Currently, several well-known banking families within the Austrian Empire had either declined or were in a state of shock due to the inability to recover imperial debts.

Once restrictions were lifted, North German banks would enter the Austrian Empire, thereby affecting the family's interests.

In the Hall of Mirrors in Vienna, a fierce argument broke out between the two sides once again.

Those supporting the entry into the German Customs Union—whether Metternich, Kolowrat, or Bruck—were experts in their respective fields.

This meant that the debate had no suspense from the very beginning.

Or so it seemed.

However, does the side that is correct and well-reasoned always win?

Presenting facts and reasoning was clearly not the forte of these noble lords; muddying the waters and playing palace politics was their true profession.

The aides they had hired with heavy gold were no slackers either.

In particular, the high nobles seized upon the fact that Metternich had once attempted to establish a German Customs Union with Austria at its core, only for it to end in an unpleasant breakup.

"Your Highness, have you forgotten? How that time with Saxony ended in such discord, and how Bavaria acted with such treachery?"

"That's right, that's right! Even Baden and Württemberg turned against us because of it. Have you forgotten all that?" another high noble chimed in.

Metternich recalled how those powerful figures had been too clever by half, leading to the dissolution of the alliance.

Because Saxony's industrial products competed with Austria's, and agricultural products from Prussia might enter Hungary through Saxony, their interests were threatened.

To prevent the Austrian Empire from trading with Saxony, the opposition even bribed officials to block the Saxon delegation from entering the country. In the end, the Saxon delegation had to enter Austria via Bavaria.

At the meeting, these high nobles proposed harsh conditions, even demanding that the Saxon government limit the quantity and variety of goods exported to Austria, causing the Saxon ambassador to leave in a rage.

Later, they even bribed the courtiers around the King of Saxony to spread false rumors that "Austria intends to make Saxony a vassal state."

At the time, King Anthony of Saxony prided himself on being the master of the "first strong state of North Germany," fantasizing that he would eventually annex Prussia and then stand on equal footing with Austria. How could he possibly accept the humiliation of becoming a vassal to Austria?

Thus, the commercial alliance between Austria and Saxony was declared broken.

The three South German states were closer to Austria in culture and religion, possessed a strong liberal spirit, were very interested in profitable ventures, and many Pan-Germanists even considered themselves subjects of the Holy Roman Empire.

The churches of the three South German states also hoped to use this to draw closer to Austria to resist the influence of North German Protestants, and the Austrian church also hoped to use this to strengthen the influence of the Catholic Church to counter the growing Protestant forces within the country.

Under Metternich's skillful blending, the attitudes of the church, the public, and the bureaucracy were unprecedentedly unified. It was already an irresistible trend, but the high nobles were not reconciled.

The high nobles first tried to use their old tricks to make things difficult for the delegation. However, this time Metternich had learned his lesson and found a general who was both a noble and an outcast from the noble circles—Julius von Haynau—to receive the delegation.

This man was the illegitimate son of the Elector of Hesse and had no right of inheritance; he should not have been a noble. But he had come to Austria alone during the Napoleonic Wars and performed brilliantly on the battlefield, earning a title in the Austrian Empire.

The "proper" high nobles held such self-made bastards in great contempt. At the same time, Haynau looked down upon those "so-called nobles" who relied on the shade of their ancestors and wet their pants at the first sign of battle.

Haynau also had another identity that made the high nobles even more disgusted. He was a Jew; his mother was the daughter of a Jewish merchant who first married a blacksmith and then, unwilling to be lonely, became the mistress of the Grand Duke of Hesse, secretly giving birth to Haynau.

People like Haynau were unacceptable to the high nobles, and Haynau's fierce reputation made everyone who tried to cause trouble steer clear.

But this time, the high nobles went even further. Their behavior could no longer be called detrimental to the country; it was outright treason. This time, they went directly to the French.

(End of chapter)