Prussia had a huge agricultural economy (one of the largest wheat—producing areas of europe)
It also had some industry in Berlin (which was a part of prussia)
The Junkers (powerful aristocrats who owned large estates) lived in East Prussia; they became the government and army officials
Frederick William III had been King of Prussia since 1797; but the Napoleonic wars ruined Prussia (for example the 1806 Battle of Jena where Napoleon occupied Berlin)
In the Tilsit Treaty (1807) Prussia lost territories along the Rhine and the East
after the congress of Vienna (1815) William III regained these territories, but he became nervous and pursued reactionary policies for the rest of his life
Frederick William’s reactionary policies were supported by Prince Metternich (the Austrian first minister) - as both wanted to bolster autocratic rule and prevent reform
After the murder of August Von Kotzebug by a liberal student, the german confederation passed laws to restrict university life and freedom of the press - these were the Carlsbad Decrees (1819)
The Carlsbad decrees exemplified Austria-Prussian co-operation - they were drawn up by Prince Metternich at Carlsbad with the agreement of Frederick William, then passed by the Federal Diet (the Decrees enabled reactionary power to be enforced)