I'm going to bring back the good old Republic of Ostria along with the Kingdom of Not-Ostria, updating them for the 19th century. Of course, there will be changes which they suffered on the way to the age where Steampunk was born out of...
(Also, if the AU beats the UK to Britain, send my apologies to Terran Emperor, he can control Albion's colonies.)
United under the command of the People-King Arthur Eisen before the new century, Eisen Europa is a powerful country within Europe which just lacks that amount of industrialization that the rest of the world has. Holding the lands of Real Life's Germany, Poland, Czech Republic, Slovakia, Austria and Hungary, to call Europa slightly large is like calling the Atlantic slightly wet. In spite being Germanic in origin- No, wait, they are still barbarians to a degree, who rather annex a country rather than just demand repayment like anyone else, my bad. Their capital, Stadt des Palastes, is found where Hamburg is, hosting the center of anything and everything militaristic, and also the only part of the nation to have any Waggonways, early examples of railways, being able to be used by the public. Europa has a heavy focus on mining, and manage to become the major producer of raw materials, at the cost of countless miners who died in the mines.
In the terms of their military, while it is backwards in some ways (A quarter of the armed forces have to use Muskets due to lack of industrialization, and the rest have to wait on trade to gain more ammunition), it is one of the larger armies in the world, if not the largest. Numbering about a million, it main tactic is to send the army (Which is divided into twenty Truppes, with fifty thousand per Truppe) to wherever the enemy is, and get the former to shoot the latter. However, when the solution requires more than 'go here and shoot them', Europa falls back onto their Royal Marines, their Green Berets... THE SPA- Wait, wrong setting. THE SEA MAR- Nope, wrong again, the nation renamed them. One more go. THE IRON MARINES! These men of glory and valor were founded about a century ago, emulating the old Sea Marines of the old Republic of Ostria. While they might not be as heavily armored as the old marines, they are still as brave and powerful, even a quarter of one of the ten legions could conquest a city-state all on their own. Originally there was twelve, but two of them left the army. One of them, Thur's Hammer, rebelled against the banning of worship for Thur, leaving for the Albion Union. The other, Blood Sparrows, got bored of the peace, and left to become a Mercenary Company against the nation's will.
Their international status is mixed, to say the least. As a trade partner, if you can get over the high tariffs for a while, you will end up being supplied with enough raw materials to be able to either kick-start your Industrial Revolution or to be able to ignore mining for your own materials in your own country. As for forming a alliance, while their military might may protect you from any threats, they expect you to supply ammunition and troops for when they go on their daily warmongering, otherwise you can count yourself on their list of 'new lands to conquer'. As a tourist destination, it's not bad, but it can be very restrictive, most of the old Ostrian ruins are off limits, and the nation's newspaper only refers to international happenings, nothing about what's going on in the country itself.
Being one of the oldest royal families in Europe, the Leben-König has a long historical trail. From the dawn of Ostria to the retreat to the 'Great Terra Longboat', and from the invasion of the Republic all the way to the modern day, the Leben-König sure are a long runner. Their country, the Union of Albion, holds the land of Britain (But not Ireland or the Isle of Man, damn Black Dogs...) and a few minor colonies, the largest one being Newfoundland. Being famed for not only a fair and just trade partner, they also house the most international immigrant population in their capital, Neue Heimat, which is just about where London is.
Their military is more naval than land, but regardless their troops are still decent for war. Numbered only about one hundred thousand, they are not only trained in the normal drills, but are also trained for handling the Albion Union Navy's ships, from the minor coastal patrol boats, to the gigantic Kracken. Along with the army and navy is the Thur's Hammer, who act as not only a elite group of zealots, but also as priests for the idea of Thur. So do not be surprised if you visit one of Thur's churches and encounter someone who just came out of Warhammer 40k, he is just the priest, he is not here to kill you when you speak your sins like you are a heretic, he does that to whoever declared war on the Union.
The idea of Thur, and likewise the militarist priests of it can be thanked to the Union's policy of total freedom. What this meant that regardless of race, gender, religion or personality, you are welcome into the Union. While it was originally used to gain population and gain peaceful vassalage of nearby tribes, it caused a rippling effect of both good and bad to the union. The good is that the capital is seen as the center of Earth, with every civilization from every corner of the earth having a part here, with even some exotic and some magical, like the Nekos from Asia. However, the bad news is that not everyone gets along, whites are racist to the blacks and vice versa, the Christians protest against Thur as a violent pagan belief, and the Nekos... Well, some humans do not like anything which isn't one hundred percent human.
Also, there is a giant bronze statue of Thur east of the capital along the river, serving as both the symbol of the policy of total freedom, as well as the base of Thur's Hammer and the largest church dedicated to... Guess who?