Setting the scene
By 1870, Prussia under Otto von Bismarck had defeated Denmark (1864) and Austria (1866), unifying northern Germany. France's Napoleon III feared German power. Bismarck provoked war by editing the Ems Dispatch to make it appear King Wilhelm I insulted France. France declared war July 19, 1870, expecting easy victory.
What happened
Prussia's superior railways, artillery, and General Staff system crushed France. At Sedan on September 1, 1870, Prussians encircled and captured Napoleon III and 100,000 French troops. Paris held out under siege for 4 months, with residents eating zoo animals. The war featured the first use of machine guns and ended with the Treaty of Frankfurt in May 1871.
Why it still matters
The war unified Germany—southern states joined Prussia, and Wilhelm I was crowned German Emperor at Versailles on January 18, 1871. France lost Alsace-Lorraine, paid 5 billion francs, and saw the Paris Commune uprising. The war created a unified Germany that would dominate Europe, established the German-French rivalry leading to WWI, and ended French dominance of continental Europe. Bismarck's realpolitik became the model for modern statecraft.
Background
The German Empire was proclaimed in 1871.