Chapter Four: A Few Attempts at Forming the German Customs Union (Part I)

Metternich, trailing behind, glanced at his two colleagues and sighed. Although they were brimming with confidence, his understanding of the old Emperor suggested that, once again, this endeavor would likely end in failure. Yet, as an idealist, he was unwilling to surrender, however slim the hope.

Metternich cherished the title "Chancellor of Europe," but only after assuming the role of Chancellor of the Austrian Empire did he realize that steering the destiny of a nation was far less effortless than he had imagined. In the past, as a diplomat, he could skillfully neutralize any barrage of criticism or hostility with mere words. But as Chancellor, without funds, he could not even afford to hire a clerk, let alone issue decrees beyond Vienna, much less implement reforms.

Domestic affairs in Austria were far more complex than the European geopolitical landscape. Joining the German Customs Union (Zollverein) was, by all accounts, a move that would benefit the Austrian Empire immensely. Yet, it faced fierce opposition—opposition that far exceeded his expectations. The abolition of tariffs threatened the incomes of certain individuals, the influx of German goods into Austria jeopardized the profits of others, and even an increase in the German population of Austria threatened the status of the elite. Emperor Francis II, however, was soft-hearted and averse to taking responsibility; the likely outcome was inaction and the preservation of the status quo.

Metternich knew well that to maintain Austria’s position as president of the German Confederation, the Empire must either join the Zollverein or prevent its formation. He had attempted the latter and failed. Led by Prussia, six northern German states formed a customs union in 1826, abolishing tariffs among themselves. The following year, the two major southern states, Bavaria and Württemberg, formed the Southern German Customs Union, later joined by other southern states to counter the Prussian-led bloc. In 1828, Hanover, Saxony, Thuringia, and the Hanseatic cities formed a Central German Customs Union in opposition to Prussia. But who would turn away from profit? These organizations, born of resistance to Prussia, crumbled and ultimately served as the foundation for the German Zollverein.

The formation of the Zollverein was good news for Prussia, but it was also good news for Austria. While Austrian goods could not compete with those of Britain or France—or even Belgium—Austria remained confident in its standing relative to Prussia. Controlling the Zollverein would not only alleviate Austria’s strained financial situation but also strengthen its grip on the German Confederation, thereby restoring the empire's prestige as a great power.

With money, Metternich could enact reforms and realize his ambitions.

On the other side, Prince Windisch-Graetz and a cohort of powerful nobles had also arrived at the palace gates. They had but one purpose: to prevent Austria from joining the Zollverein. Because Bohemia bordered Southern Germany and Saxony, the elimination of tariffs would severely impact the incomes of local nobles and officials. Prince Esterházy had even traveled overnight from Hungary, though not for money. In his view, trading with Prussia might allow him to purchase luxury goods like amber, agate, and pearls more cheaply, but if Austria established closer ties with Germany, the German population within Austria would increase, likely undermining the power of the Hungarian nobility. This was intolerable to him and his peers.

Bolstrow, a banker and representative of the Rothschild family, opposed the move because Salomon Rothschild wished to maintain an absolute monopoly over the Austrian Empire’s banking sector. Currently, several renowned banking families in Austria were either in decline or paralyzed by the inability to recover imperial debts. Opening the market would allow Northern German banks to enter the Empire, threatening his family's interests.

Inside the Hall of Mirrors in Vienna, a fierce argument erupted. Those supporting the entry into the Zollverein—Metternich, Kolowrat, and Bruck—were experts in their respective fields. From the start, the debate seemed to have no suspense—or so it should have been. Yet, does the side with truth and reason always triumph?

Presenting facts and logic was clearly not the forte of these noble lords; sowing discord and playing palace politics were their true specialties. The advisors they had hired with heavy purses were no slouches either. The grand nobles, in particular, seized upon Metternich’s previous failed attempt to establish an Austrian-led customs union, refusing to let the matter drop.

"Your Highness, have you forgotten how that venture with Saxony ended in discord, and how treacherous Bavaria was?"

"Indeed, indeed! Even Baden and Württemberg turned against us because of it. Have you forgotten all this?" another noble chimed in.

Metternich recalled how those very power brokers had, through their own arrogance and short-sightedness, caused the collapse of that earlier alliance.

Because Saxon industrial goods competed with Austria’s, and Prussian agricultural products might pass through Saxony into Hungary, the nobility saw their interests threatened. To prevent trade, they had even bribed officials to block the Saxon delegation from entering the country, forcing them to travel through Bavaria instead. During the meetings, these nobles had demanded such harsh conditions—even requiring the Saxon government to limit the quantity and types of goods exported to Austria—that the Saxon ambassador had left in a rage. They further bribed courtiers close to the Saxon King, spreading rumors that "Austria intends to make Saxony a vassal."

King Anton I of Saxony, who prided himself as the master of the "first power of Northern Germany" and dreamed of one day annexing Prussia to rival Austria, could never accept such humiliation. Thus, the commercial alliance between Austria and Saxony collapsed.

The three Southern German states were culturally and religiously closer to Austria and possessed a strong liberal streak; they were interested in profit, and many Pan-Germanists among them even considered themselves subjects of the Holy Roman Empire. The churches in the south hoped to use this to draw closer to Austria to resist the influence of Northern German Protestants, while the Austrian church hoped to bolster the influence of Catholicism against the rising Protestant forces within the country.

Under Metternich’s skillful orchestration, the attitudes of the church, the public, and the bureaucracy were unprecedentedly unified. It was a trend that could not be stopped—but the high nobles were not resigned. They first attempted their old tricks to obstruct the delegation, but this time, Metternich had learned. He chose Julius von Haynau—a general who was a nobleman but entirely alienated from the aristocratic circle—to host the delegation.

Haynau was the illegitimate son of the Elector of Hesse and held no inheritance rights; he should not have been a nobleman at all. Yet, he had made his way to Austria alone during the Napoleonic Wars and, through his brilliant performance on the battlefield, earned an imperial title. The "true" high nobles despised this self-made man of common birth, while Haynau held nothing but contempt for those who relied on their ancestors’ shadows and cowered at the first sign of war.

Haynau possessed another identity that made the nobles detest him even more: he was of Jewish descent. His mother was the daughter of a Jewish merchant who had first married a blacksmith before becoming the mistress of the Elector of Hesse and bearing Haynau in secret. Such a man was unacceptable to the high nobility, and Haynau’s reputation for brutality made anyone attempting to cause trouble think twice.

But this time, the high nobles went even further. Their actions could no longer be called merely detrimental to the state; they were verging on treason. This time, they had gone straight to the French.