The North German Confederation was a political entity established in 1867, uniting several northern German states under a federal structure. It was formed after the Austro-Prussian War, which led to the exclusion of Austria from German affairs. The confederation included states like Prussia, Saxony, and Hanover, and was characterized by a strong central government dominated by Prussia. The confederation's constitution provided for a federal assembly, known as the Bundesrat, and a popular assembly called the Reichstag. This structure laid the groundwork for the eventual unification of Germany in 1871, leading to the establishment of the German Empire.