When the delegates in Munich met, it quickly became clear that the differences between even the South-German and Central-German states were massive. The Industrial development of northern Hesse, with its rich factories, meant that the delegates wanted as much free-circulation of goods as possible, whilst the Franconian lands of Bavaria, largely still agricultural and poor, wanted protection for their nascent textile industry. Baden, with its protestant and anti-catholic-clerical leadership and pro-Prussian course, was in the same forum as Bavaria, in the South a devoutly Catholic nation.
It also became obvious, that none of the attendees was certain, how the Unification of their states into one sovereign nation would have affected their votes in the overall German Confederation. Each of the small princes had one vote each, whilst Bavaria and Württemberg had just as many as Prussia and Austria. As such it was deemed impossible to form a single cohesive state, or as Ludwig von der Pfordten, the Bavarian Prime Minister put it: "The Bund as a whole needs reform, South-Germany needs reform, but doing one can make the other impossible"

The model they came to use was that of the Zollverein, an organization that also existed within Germany, but was not tied directly to the Confederation as a whole, which whilst uniting them on certain issues, technically kept everyone independent and sovereign.

The first agreement the delegates agreed on, was to propose to their Parliaments and Sovereigns a cohesive military policy, especially as troops from many South-German and central german states, deployed to Holstein and Lauenburg in groups as small as 200, usually had a supreme commander of their respective nation:

Gemeinsame Süddeutsche Militärakte (Common South-German Military accord):

Recognizing the challenges of the Bundesheer to unite small contingents from small states, as well as the renewed geopolitical danger to the germanies as a whole, the undersigned parties agree to the following:

1. The commitment of their respective nations to implement universal military service of at least 12 months.

2. The establishment of the South-German General's Staff, a unified commanding body, which will have the supreme command over the signatories forces in the following cases:
2.1 The Declaration of a Bundeskrieg, Bundesexekution or Bundesintervention by the Bundestag of the German Confederation
2.2 The Recognition of a case of attack upon one of the members of the accord
2.3 By unanmious consent of all signing powers in any other case

3. To the establishment of a council of Ministers of War, working on, but not limited to:
3.1 The standardization of military protocols and training
3.2 Keeping military equipment to such levels of standardiazation as permitting unified and interchangeable use

Having drafted a first common policy, many of the delegates, whom had also attended the conferences in Würzburg in 1859 and 1860, took inspiration from the proposals made there, but remaining ever-careful not to make it impossible for the confederation as a whole to adopt the policies the princes and their delegates laid out in Munich. The most troublesome issue proved that of a Parliament. The franchise in the South-German states varied significantly; whilst in the Grand Duchy of Baden, the majority of citizens had the right to vote, in Württemberg the Lower House also consisted of notables, who were unelected. It was chosen to only tangibly touch on this problem, and grant the right to choose the franchise, according to which it would elect such a body to the sovereign states themselves.

Zusammenschluss zum Süddeutschen Parlament (Combining for the South-German Parliament) :

1. There will be a unicameral body, with xx seats, assigned to the signatories by
1.1 Half of each member state's delegation will be appointed by the government, whilst the other half will be elected
1.2 The voting rights and rules to this bodies elected representatives will be determined by the sovereign states signatory to this agreement

2. This House will be tasked with unifying the criminal and civil justice laws of the member states, according to the professional guidance of the Deutsche Juristentag (German Law Convention)
2.1 The signing powers strongly encourage any other german state to voluntarily follow the guidelines on law this body will provide
3.

4. All decisions made by this house are proposed to the local governments for final adoption