In combination with the treaties of Prussia and several south - and central German states it effectively ended the Austro-Prussian War.
[1] The treaty was lenient toward the Austrian Empire because Otto von Bismarck had persuaded Wilhelm I that maintaining Austria's place in Europe would be better than harsh terms for the future for Prussia.
Austria refused to give Venetia directly to Italy because the Austrians believed themselves to have crushed the Italians during the war.
The Kingdom of Prussia thus established itself as the only major power among the German states.
The Southern German states outside the Confederation were required to pay large indemnities to Prussia.