 The second determining event , the decisive French victory at the Battle of <unk> over the combined Russian and Austrian armies , forced the Austrian withdrawal from the Coalition . The subsequent Peace of <unk> , signed on 26 December 1805 , reinforced the earlier treaties of <unk> <unk> and <unk> . Furthermore , Austria ceded land to Napoleon 's German allies , and paid an indemnity of 40 million francs . Victory at <unk> also gave Napoleon the latitude to create a <unk> zone of German states between France and the states of Prussia , Russia , and Austria . These measures did not establish a lasting peace on the continent . Prussian worries about growing French influence in Central Europe sparked the War of the Fourth Coalition in 1806 , in which Austria did not participate . 
