After the Thirty Years' War, the Habsburg power experienced a significant shift as they lost considerable influence in the Holy Roman Empire. The Peace of Westphalia in 1648 recognized the sovereignty of individual states, diminishing Habsburg authority and leading to the rise of regional powers like France and Sweden. Additionally, the war weakened the Habsburgs financially and militarily, prompting them to focus more on consolidating their diverse territories, particularly in Austria and Hungary, rather than exerting control over the fragmented German states. This shift marked a transition towards a more centralized and hereditary Habsburg dominance in Central Europe, particularly under the rule of Leopold I.
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