The alliance with Liberalism breaks down, and the efforts of the Government are devoted to a far-reaching scheme of financial reform and social legislation.
When, in April, 1877, the Emperor refused to accept Bismarck's resignation, the whole country applauded the decision.

In the Reichstag a great demonstration was made of confidence in the Chancellor.

Everyone felt that he could not be spared at a time when the complications in the East were bringing new dangers upon Europe, and in the seclusion of Varzin he did not cease during the next months to direct the foreign policy of the Empire.

He was able with the other Governments of Europe to prevent the spread of hostilities from Turkey to the rest of Europe, and when the next year the English Government refused its assent to the provisional peace of San Stefano, it was the unanimous desire of all the other States that the settlement of Turkey should be submitted to a Congress at Berlin over which he should preside.

It was the culmination of his public career; it was the recognition by Europe in the most impressive way of his primacy among living statesmen.