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In the mid 19th century there were some who wanted to unify all German states in to Greater Germany (Großdeutschland), which would have included Austria. However, in the end it was Bismarck's Lesser Germany (Kleindeutschland) model which prevailed. There were many reasons for this, rivalry between Prussia and Austria probably being the most important.

So what it would have taken to get this Greater Germany model to work? Lesser Germany was steamrolled by Otto von Bismarck, who wanted a Prussian dominated German Empire. So reducing his role would be essential. Biggest problem I can see would be the two thrones. Who would become the Emperor, William of Prussia or Franz Josef of Austria? Could Hungary an other non German parts of Austrian Empire be included? Any ideas?
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