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Certain Austrian holdings in Germany were passed to French allies-the King of Bavaria, the King of WГјrttemberg and the Grand Duke of Baden. The Treaty of Pressburg between France and Austria, signed in Pressburg (today Bratislava, Slovakia) on 26 December, enlarged the territory of Napoleon's German allies at the expense of defeated Austria.ДЇrancis II agreed to the humiliating Treaty of Pressburg (26 December 1805), which in practice meant the dissolution of the long-lived Holy Roman Empire and a reorganization under a Napoleonic imprint of the German territories lost in the process into a precursor state of what became modern Germany, those possessions nominally having been part of the Holy Roman Empire within the present boundaries of Germany, as well as other measures weakening Austria and the Habsburgs in other ways. Each of these new states became French allies. Charles Frederick, Margrave of Baden, was given the title of Grand Duke on 12 December. On 10 December 1805, Maximilian IV Joseph, the prince-elector and Duke of Bavaria, proclaimed himself King, followed by the Duke of WГјrttemberg Frederick III on 11 December. The French victories encouraged rulers of certain imperial territories to ally themselves with the French and assert their formal independence from the Empire. Francis was forced into negotiations with the French from 4 to 6 December 1805, which concluded with an armistice on 6 December 1805. Napoleon's army won another victory at Austerlitz on 2 December 1805.

The French victory resulted in the capture of 20,000 Austrian soldiers and many cannons. On 20 October 1805, an Austrian army led by General Karl Mack von Leiberich was defeated by French armies near the town of Ulm.

The fall and dissolution of the Holy Roman Empire was accelerated by French intervention in the Empire in September 1805. Thus no Imperial institutions were involved in its government. Hungary's affairs remained administered by its own institutions (King and Diet) as they had been beforehand. This was especially demonstrated by the status of the Kingdom of Hungary, a country that had never been a part of the Holy Roman Empire and which had always been considered a separate realm-a status that was affirmed by Article X, which was added to Hungary's constitution in 1790 during the phase of the composite monarchy and described the state as a Regnum Independens. Apart from now being included in a new ' Kaiserthum', the workings of the overarching structure and the status of its component lands at first stayed much the same as they had been under the composite monarchy that existed before 1804. To safeguard his dynasty's imperial status he adopted the additional hereditary title of Emperor of Austria. He did so because he foresaw either the end of the Holy Roman Empire, or the eventual accession as Holy Roman Emperor of Napoleon, who had earlier that year adopted the title of an Emperor of the French Francis II eventually abandoned the title of German-Roman Emperor later in 1806. In doing so he created a formal overarching structure for the Habsburg Monarchy, which had functioned as a composite monarchy for about three hundred years. In 1804, the Holy Roman Emperor Francis II, who was also ruler of the lands of the Habsburg Monarchy, founded the Empire of Austria, in which all his lands were included. Taking this significant change into consideration, the Holy Roman Emperor Francis II created the title Emperor of Austria, for himself and his successors. This measure was aimed at replacing the old constitution of the Holy Roman Empire, but the actual consequence of the Imperial Recess was the end of the empire.

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On 24 March 1803, the Imperial Recess (German: Reichsdeputationshauptschluss) was declared, which reduced the number of ecclesiastical states from 81 to only 3 and the free imperial cities from 51 to 6.

See also: Imperial and Royal Army during the Napoleonic WarsД¬hanges shaping the nature of the Holy Roman Empire took place during conferences in Rastatt (1797вЂ“1799) and Regensburg (1801вЂ“1803).