German Confederation contains the administrative territorial entity Kingdom of Prussia
Impact of the French Revolution and the Napoleonic invasions
The late 18th century was a period of political, economic, intellectual, and cultural reforms, the Enlightenment (represented by figures such as Locke, Rousseau, Voltaire, and Adam Smith), but also involving early Romanticism, and climaxing with the French Revolution, where freedom of the individual and nation was asserted against privilege and custom.  Representing a great variety of types and theories, they were largely a response to the disintegration of previous cultural patterns, coupled with new patterns of production, specifically the rise of industrial capitalism.
However, the defeat of Napoleon enabled conservative and reactionary regimes such as those of the Kingdom of Prussia, the Austrian Empire, and Tsarist Russia to survive, laying the groundwork for the Congress of Vienna and the alliance that strove to oppose radical demands for change ushered in by the French Revolution. With Austria's position on the continent now intact and ostensibly secure under its reactionary premier Klemens von Metternich, the Habsburg empire would serve as a barrier to contain the emergence of Italian and German nation-states as well, in addition to containing France.  But this reactionary balance of power, aimed at blocking German and Italian nationalism on the continent, was precarious.
After Napoleon's final defeat in 1815, the surviving member states of the defunct Holy Roman Empire joined to form the German Confederation (Deutscher Bund)—a rather loose organization, especially because the two great rivals, the Austrian Empire and the Kingdom of Prussia, each feared domination by the other.
In Prussia the Hohenzollern rulers forged a centralized state.  By the time of the Napoleonic Wars, Prussia, grounded in the virtues of its established military aristocracy (the Junkers) and stratified by rigid hierarchical lines, had been surpassed militarily and economically by France.  After 1807, Prussia's defeats by Napoleonic France highlighted the need for administrative, economic, and social reforms to improve the efficiency of the bureaucracy and encourage practical merit-based education.  Inspired by the Napoleonic organization of German and Italian principalities, the Prussian Reform Movement led by Karl August von Hardenberg and Count Stein was conservative, enacted to preserve aristocratic privilege while modernizing institutions.
Outside Prussia, industrialization progressed slowly, and was held back because of political disunity, conflicts of interest between the nobility and merchants, and the continued existence of the guild system, which discouraged competition and innovation. While this kept the middle class at bay, affording the old order a measure of stability not seen in France, Prussia's vulnerability to Napoleon's military proved to many among the old order that a fragile, divided, and traditionalist Germany would be easy prey for its cohesive and industrializing neighbor.
The reforms laid the foundation for Prussia's future military might by professionalizing the military and decreeing universal military conscription. In order to industrialize Prussia, working within the framework provided by the old aristocratic institutions, land reforms were enacted to break the monopoly of the Junkers on land ownership, thereby also abolishing, among other things, the feudal practice of serfdom.
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