King William I appointed Otto von Bismarck as the new Minister President of Prussia in 1862. Bismarck successfully concluded war on Denmark in 1864, which promoted German over Danish interests in the Jutland peninsula. The subsequent (and decisive) Prussian victory in the Austro-Prussian War of 1866 enabled him to create the North German Confederation (Norddeutscher Bund) which excluded Austria from the federation's affairs. After the French defeat in the Franco-Prussian War, the German princes proclaimed the founding of the German Empire in 1871 at Versailles, uniting all scattered parts of Germany except Austria. Prussia was the dominant constituent state of the new empire; the Hohenzollern King of Prussia ruled as its concurrent Emperor, and Berlin became its capital
