Again, these are just ideas and a rough outline, with changes to be made as needed.
The Great Realignment
France reestablishes its old alliances with Baden and Bavaria, as well as forging new ones with Saxony and Thuringia.
Luxembourg strengthens its ties to Brandenburg and Albion and forges new ones with Swabia.
Scandinavia is increasingly isolated.
Italy grows closer to the Eastern Empires, especially Hungary, becoming the first western nation to "Easternize" its government.
Colonial Wars/Wars of Betrayal
1775: William V of Albion (House Monmouth-von Luxembourg), claiming that Albion's interests in Terrarica are threatened, launches attacks on Hispania's and France's colonies in North Terrarica. William has the assurance of his uncle, Otto XIII of Luxembourg, that Luxembourg will declare war on France, distracting them. This will leave Hispania as the only opponent able to fully commit to the war in the colonies--and as Hispania would be fighting for its significantly less valuable northern colonies, it will be far more likely to give in shortly. (None of this is half as clever as William thinks it is, but he's a thwarted, bitter man with mother issues, eager to leave his mark on history.) Luxembourg does declare war on France--but concentrates its efforts on Saxony and Thuringia, leaving France quite free to concentrate on Albion indeed.
1776: Baden and Bavaria declare war on Luxembourg and its allies. This turns out to mean they invade Swabia while engaing in token efforts to assist Saxony and Thuringia. This brings in Brandenburg, which joins in the attack on Saxony and Thuringia. In the colonies, Albion does rather well for a while, as France and Hispania are not coordinating their efforts, nor are they committing too many resources.
1777: Poland declares war on Brandenburg. This forces the German state to put forth more effort in its defense, leaving Luxembourg to the lion's share of Saxony and Thuringia. The colonial situation begins to reverse, as numbers start to tell, and Hispania and (especially) France begin to throw more into the fight.
1778: Scandinavia moves to "protect" its "allies in Frisia", which, amazingly means placing more troops there, some of which find themselves in the north of Saxony, somehow. By this point, the "war" in the three middle provinces is almost entirely between their would-be conquerers, each of whom has found a collection of minor nobles and cities that they claim to be championing. In the colonies, things take a turn for the worse for Albion, as France and Hispania finally swallow their differences, and agree to work together.
1779: Brandenburg surrenders to Poland, agreeing to cede some land in the east to the Empire, then enlists Poland's support in the middle provinces, hoping to contain former ally Luxembourg's growing power. The colonial situation is dragging on--Albion is losing but its managing to make losing a long slow haul for all involved.
1780: By this time, the Wars of Betrayal and the Colonial Wars are barely connected, one a far-ranging battle for overseas empire, the other a squalid little struggle to grab as much of the weaker German states as they can. The two Houses of Wettin formally surrender to Luxembourg, becoming vassals, while in Swabia, Frederick V of Hohenstaufen simplifies everything by dying without a clear heir. Meanwhile, the Colonial Wars drag on. The Albion situation degrades further when several colonies rebel and side with the French.
1781: The wars in the German States have largely settled down to the occasional minor skirmish. The major action there is now diplomatic, with Luxembourg granting minor provinces of Saxony and Thuringia to Brandenburg, Poland, and Scandinavia--or more exactly to Scandinavia's puppet Frisia--so it can keep the majority of both, while Swabia has been divided between Baden and Bavaria, with Luxembourg getting a few northern provinces.
1782: The war in the colonies is all but finished, with Albion hanging on to a handful of colonies. William is finally forced to admit defeat and go to the bargaining tabel.
1783: The colonial Wars formally end, and Hispania, France and Albion acknowledge the "new German situation". Many whisper of secret agreements between some of the participants in the Wars of Betrayal--especially Baden, Bavaria and Luxembourg.
END RESULTS
ALBION: Loses its colonies in North Terrarica, keeping a few of the Azúcar Isles (IOTL Carribean). Albion now faces massive debt, a heavily damaged navy, and an utter sense of international isolation that comes to dominate its politics in the future--"Albion against the world". King William drinks himself to death, and is succeeded by his less than able son Harold.
FRANCE: Gains much of North Terrarica, but the price tag has been heavy. Demands for reform will dominate France in the future.
HISPANIA: Masters of the Atlantic, but like France, facing massive debts, and demands for reform. On the reform issue, unlike France, Hispania refuses to budge an inch. This begins an almost century and a half long struggle to maintain Hispanic autocracy that will ultimately end in tragedy.
LUXEMBOURG: Wins a great deal of territory, but becomes viewed as the great traitor of Europe. Plants the seeds of Luxembourg's inevitable decline.
BADEN/BAVARIA: Divide Swabia between themselves. Considered less odious than Luxembourg, but this has tainted them.
BRANDENBURG: Has lost territory in the east, but gained it in the west. It has also done a complete volte face on centuries' of foreign policy. Now instead of looking to either Luxembourg or Scandinavia to protect it from Poland, it looks to Poland to protect it from Luxembourg and Scandinavia. This leads to a growing Easternization in Brandenburg politics, as it becomes the first German State to elect a Senate--or Reichstag, as it calls it.
SCANDINAVIA: Gains a little territory. Sadly, this is not enough to assuage the Kingdom's rather prickly sense of its own importance. In the immediate future, the nation's politics will continue to be dominated by their need to show themselves a great power.
POLAND: The Empire gains some territory and a great deal of influence over Brandenburg, as well as a growing interest in the German states.
SAXONY/THURINGIA: Conquered, though the Wettins remain in power as servants of Luxembourg.
SWABIA: Conquered, and very much divided. If any state has lost the most, it's Swabia.