The events of 1866 had major repercussions in the rest of Europe. After their defeat by Prussia, the Austrians realized they could not continue to fight the Italians, despite the victory of Custoza, and capitulated, leaving the peace settlement to cede the rest of northern Italy to the Italian state – an outcome which led to the jibe of a Russian diplomat at a peace conference later in the century, that since the Italians were demanding more territory, he supposed they must have lost another battle.
