By 1763, the war in central Europe was essentially a stalemate between Prussia and Austria. Prussia had retaken nearly all of Silesia from the Austrians after Frederick's narrow victory over Daun at the Battle of Burkersdorf. After his brother Henry's 1762 victory at the Battle of Freiberg, Frederick held most of Saxony but not its capital, Dresden. His financial situation was not dire, but his kingdom was devastated and his army severely weakened. His manpower had dramatically decreased, and he had lost so many effective officers and generals that an offensive against Dresden seemed impossible. British subsidies had been stopped by the new prime minister, Lord Bute, and the Russian emperor had been overthrown by his wife, Catherine, who ended Russia's alliance with Prussia and withdrew from the war. Austria, however, like most participants, was facing a severe financial crisis and had to decrease the size of its army, which greatly affected its offensive power. Indeed, after having effectively sustained a long war, its administration was in disarray. By that time, it still held Dresden, the southeastern parts of Saxony, and the county of Glatz in southern Silesia, but the prospect of victory was dim without Russian support, and Maria Theresa had largely given up her hopes of re-conquering Silesia; her Chancellor, husband and eldest son were all urging her to make peace, while Daun was hesitant to attack Frederick. In 1763 a peace settlement was reached at the Treaty of Hubertusburg, in which Glatz was returned to Prussia in exchange for the Prussian evacuation of Saxony. This ended the war in central Europe.