Ausgleich.
The agreement settling the economic relations between Austria and Hungary. The first Ausgleich was signed in 1867, for a period of ten years, and was renewed with slight variations in 1877 and 1887. The Austrian Reichsrath refused to sanction the Ausgleich of 1897, and it was promulgated by what is known as the Dictatorship paragraph of the Austrian Constitution, in other words by Imperial decree. In 1899 it was amended by the Szell formula, by which M. Szell, the Hungarian premier, stipulated that if the Ausgleich were not formally renewed before the end of 1902, the economic union between the two countries should come to an end in 1907. On New Year’s Eve, 1902, a new Ausgleich, to run for ten years, was agreed to by the Austrian and Hungarian Premiers.