Franz didn't publicly reveal that he planned to integrate all the nationalities into the Austrian nationality since it was very likely that most people would not easily accept it, except for the serfs who had no nationality. Without everyone's heartfelt approval and desire to become "Austrian," the use of force would only further strengthen the turmoil within the Austrian Empire.

Nationalism had originated in Europe in the late 18th century in order to counter theocracy and feudalism, practices which had become corrupted after a thousand years of existence. Unsurprisingly, the nationalist movement was led by the bourgeoisie. The numerous bourgeois revolutions that took place from 1789 to 1871 and the establishment of the republics was driven by nationalism.

Southeastern Europe had always been relatively conservative, so the concept of nationalism only arrived there through the ideological exportation by the Great Powers. For example, Hungarian nationalism was exported by the French. Similarly, in the mid-19th century, Russia had exported the idea of "Pan-Slavism" in order to annex the Balkans which had a significant Slavic population.

Minister-President Schwarzenberg looked at Finance Minister von Bruck and asked, "Your Excellency, if we follow your advice and create an Austrian nationality, won't we be forced to give up the German lands and build a separate Austrian empire?"

Hearing these words, the atmosphere in the room quickly turned cold.

"Since the demise of the Holy Roman Empire in 1806, Austria has been independent from Germany proper. Lord Minister-President, do you truly believe that we can rebuild the Holy Roman Empire?" Finance Minister von Bruck retorted.

Minister-President Schwarzenberg didn't reply and just stared back.

Foreign Minister Metternich advised, "It is impossible to unify Germany proper. Austria can continue to remain independent from it, but we cannot give up our German lands. This is a matter of principle.

In addition, it is obviously not desirable to replace all nationalities with a single nationality. At best, we can downplay the concept of different nationalities and emphasize loyalty to the Austrian state."

Hearing the thoughts of the Cabinet members, Franz frowned. Sure enough, everyone was in opposition. During this age, the fragility of a multi-ethnic nation has not been recognized. This might be because the governments over the previous centuries have used ethnic and religious conflicts to cover up class conflicts.

From the atmosphere, it was clear that Finance Minister von Bruck alone would be unable to stand against the entire Cabinet. Franz had to make a statement, or else the plan to create an Austrian nationality would die in the womb.

Franz cleared his throat and said, "Your Excellencies, we need to look at this topic from a different viewpoint. All the people living in Austria together make up the Austrian Empire. Similarly, these people living in Austria should be considered Austrians.

If we build a nationality which everyone agrees upon and gradually replace the dozens of nationalities which exist within Austria, it will greatly reduce ethnic conflicts within our lands. On top of that, we can avoid a rebellion like the Hungarian rebellion in the future."

"Your Imperial Highness, even if there is a homogenized nationality, ambitious people will think up some other excuse. In fact, there is no lack of excuses one can come with up to justify a rebellion.

Is it worth it for us to lose our leadership in the German region to solve a problem which isn't even a problem?" asked Archduke Louis.

His question was polite, but it could also be said that he was implying that Franz was a foolish coward and a traitor.

The core of Austria nobility and monarchy has always been composed of Germans, so if Austria abandons the German region, it is no different from abandoning the basis of its rule.

"Lord Archduke, you misunderstand. Who said we should give up leadership of the German region?" Franz asked back.

Before he could reply, Franz quickly continued, "Although the German region is filled with mountains and lacks compared to the fertile Hungarian plains or Balkans, it is located in the heart of Europe. Whoever controls it will dominate Europe. Unfortunately, we do not have the strength to unify the German region since the other European nations will not tolerate the unification of the German region.

In this context, Austria is only the nominal leader of Germany. Internally, we are challenged by the Prussians while externally we have to resist the pressure from France and Britain. And all we have to show for all that effort is just some prestige. Has Austria actually ever benefited from being the leader of the German region?

From an investment perspective, the resources we have invested in the German region over the decades have all ended up in a loss. Meanwhile, the Prussians have gained a lot of benefits from our hard work. That being the case, why don't we temporarily abandon our investment in the German region and invest in other regions which have a higher return on investment?

As for the German region, we only need to maintain our current influence. In fact, maintaining a balance of power within the German region is not just our responsibility. We can divide our responsibilities with smaller allies in the German region, so that they won't remain idle."

Franz wants to shift Austria's strategic focus. He is aware that if he continues to waste his time in the German region he won't get anywhere, similar to the Austro-Hungarian Empire of the future.

In addition, even though it seems like Austria rules the German region thanks to its many small allies who are wary of Prussia, if Franz dares to show his ambition of unifying Germany, these small allies will be the first ones to oppose him. Soon, Austria will find itself surrounded by enemies on all sides.

For specifics, he can refer to his ancestor, Holy Roman Emperor Charles V, who showed his ambition to unify the German region and soon his life became miserable due to the alliance between France and the German princes of the Holy Roman Empire.

At that time, the Habsburgs ruled the "Empire upon which the Sun never set," an empire far more powerful than the current Austria. The Habsburgs ruled the Spanish Empire at its peak and had occupied more than half of Italy. In addition, the Netherlands and Belgium were their ancestral lands.

Franz was worried about Austria being kicked out of the German region. The German princes are not stupid. Their lives will be easier and their lands will be safer if Austria and Prussia continue to restrain each other. If Prussia is left to its devices without anyone to restrain it, their end wouldn't be very far.

After so many years of mergers and reorganization, everyone has become aware that a balance of power is necessary for small states to survive. As a result, the states within northern Germany moved closer to Prussia while the states within southern Germany moved closer to Austria.

Franz's implication was clear. It is nothing more than abandoning the long-term continental balance policy. Anyways, the Vienna system has already collapsed. The cost is not worth the reward for Austria to rebuild it.

Foreign Minister Metternich had become interested so he asked, "Your Imperial Highness, are you planning to shift Austria's strategic focus to Italy?"

Franz shook his head and replied, "No, Austria's new strategic focus will be domestic. In Italy, all we will do is beat back the unruly Kingdom of Sardinia."

Hearing Franz's answer, everyone breathed a sigh of relief. It's not that simple to do anything in Italy since the British and the French also have their eyes on Italy, especially the French.

It's not a big deal if it's just beating back the Kingdom of Sardinia. After all, the Kingdom of Sardinia was the one to launch a war of aggression against Austria. It's only natural that Austria should pay it back for its insolence.