How did Otto von Bismarck resolve the Prussian budget conflict after the war with Austria?

Following the Prussian victory in the Seven Weeks’ War, Otto von Bismarck resolved the long-standing constitutional budget conflict by making a conciliatory gesture toward the liberals. He requested an act of indemnity to retroactively legalize the government's unconstitutional collection of taxes, which had been ongoing since the parliamentary struggle began in 1862.1

The Prussian parliament passed this act on September 3, 1866. This move effectively ended the struggle for power between the crown and the legislature. By offering this compromise, Bismarck successfully gained the support of a large portion of the middle class, who were willing to set aside their demands for parliamentary sovereignty in exchange for the prospect of German national unity.12