By the 1860s the Kingdom of Prussia and the Austrian Empire were the two most powerful nations dominated by German-speaking elites. Both sought to expand their influence and territory. The Austrian Empire – like the Holy Roman Empire – was a multi-ethnic state, but German-speaking people there did not have an absolute numerical majority; the creation of the Austro-Hungarian Empire was one result of the growing nationalism of other ethnicities especially the Hungarians. Prussia under Otto von Bismarck would ride on the coat-tails of nationalism to unite all of modern-day Germany. The German Empire ("Second Reich") was created in 1871 following the proclamation of Wilhelm I as head of a union of German-speaking states, while disregarding millions of its non-German subjects who desired self-determination from German rule.
Which empire was a multi ethnic state?
The Austrian Empire