Since this all-German national assembly had not been initiated by the German Confederation, it was lacking not only major constitutional bodies, such as a head of state and a government, but also legal legitimation.
A modification of the Bundesakte, the constitution of the German Confederation, could have brought about such legitimation, but as it would have required the unanimous support of all 38 signatory states this was practically impossible.
The delegates on the left wanted to solve this situation by creating a revolutionary parliamentary government, but, on 24 June 1848, the majority (450 – 100) voted for a compromise, the so-called Provisional Central Power.
On 24 June 1848, President of the National Assembly Heinrich von Gagern argued for a regency and provisional central government to carry out parliamentary decisions.
The Archduke received the delegation on 5 July 1848 and accepted the position, stating, however, that he could not undertake full responsibility in Frankfurt until he had finished his current work of opening the Austrian Parliament in Vienna.
On 15 July 1848, the Regent appointed his first government under prime minister Prince Karl zu Leiningen, the maternal half-brother of Queen Victoria of Great Britain.
On 16 July, the Minister of War sent a circular to the state Governments with a proclamation to the German troops, in which he decreed the Regent as the highest military authority in Germany.
Difficulties arose in the procurement and equipment of suitable warships, as the British and Dutch were wary of a new naval power arising in the North Sea, and Denmark pressed its blockade harder.
Actual monies for the Navy did not become available until the Confederate Diet dissolved itself on 12 July 1848 and the Federal Fortress budget (Bundesmatrikularkasse) came into possession of the Provisional Central Power.
Discussions in the National Assembly for raising funds through taxes were tied into the Constitutional debates, and the Provisional Central Power could not convince the state governments to make any more contributions than what they had agreed upon in the Confederate Diet.
Effectively, the National Assembly and the Provisional Central Power were bankrupt and unable to undertake such rudimentary projects as paying salaries, purchasing buildings, or even publishing notices.
Theoretically, the transfer of the Confederate Diet's authority to the Regent on 12 July gave him legitimate, binding power independent of the National Assembly.
[5] His successor, Anton von Schmerling, held contempt for many of the institutions he had dutifully served, such as the Confederate Diet, and considered the National Assembly and his administration to be the future of Germany.
Heinrich Gagern's appointment as Prime Minister in December was to serve that purpose, even though relations between the Regent and the former President of the National Assembly were poor.
As the near-inevitable result of having chosen the Smaller German Solution and the constitutional monarchy as form of government, the National Assembly elected the Prussian king Frederick William as hereditary head of state on 28 March 1849.
President of the Assembly Eduard von Simson was surprised by the act, and hastened to the Thurn and Taxis Palace where he requested him to remain as Regent until the coronation should occur.
This act created something of a crisis, as possession of the office would be an important increase in Prussia's influence over the German Confederation, whether the King accepted the crown of Germany or not.
Following Prussia's lead, the Constitution was rejected by the larger states and Gagern demanded that the Regent personally intervene to convince the Princes to yield.
Great unrest answered Grävell's words, as the National Assembly was directly confronted with the statement that the Regent's power originated from the states, not the revolution.
With the appointment of Sayn-Wittgenstein-Berleburg as Prime Minister, the Regent placed a staunchly conservative pro-Austrian candidate to steer the Provisional Central Power back toward the Confederate Diet.
Therefore, Prussia chose to support the Union Policy (Unionspolitik) designed by the conservative Paulskirche deputy Joseph von Radowitz for a Smaller German Solution under Prussian leadership.
Archduke John attempted to resign his office once more in August 1849, stating that the Regency should be jointly held by Prussia and Austria through a committee of four until 1 May 1850, by which time all of the German governments should have decided on a new Constitution.
The two governments agreed in principle, and a so-called Compact of Interim was signed on 30 September, transferring all responsibilities of the Provisional Central Power to the two states, though not relieving the Regent of his office as yet.