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Confederation

Union of sovereign states linked by treaty

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Through Treaty, International organization and Federalism

The nature of the relationship among the member states constituting a confederation varies considerably. Likewise, the relationship between the member states and the general government and their distribution of powers varies. Some looser confederations are similar to international organisations while other confederations with stricter rules may resemble federal systems. These elements of such confederations, the international organization and federalist perspective, has been combined as supranational unions.

Since the member states of a confederation retain their sovereignty, they are generally understood to have the implicit right of secession, although in practice this right may be constrained by legal arrangements or increasing centralization that makes the confederation functionally similar to a federation. The political philosopher Emmerich de Vattel said: "Several sovereign and independent states may unite themselves together by a perpetual confederacy without each, in particular, ceasing to be a perfect state.... The deliberations in common will offer no violence to the sovereignty of each member".

Under a confederation, compared to a federal state, the central authority is relatively weak. Decisions made by the general government in a unicameral legislature, a council of the member states, require subsequent implementation by the member states to take effect; they are not laws acting directly upon the individual but have more the character of interstate agreements. Also, decision-making in the general government usually proceeds by consensus (unanimity), not by the majority. Historically, those features limit the union's effectiveness. Hence, political pressure tends to build over time for the transition to a federal system of government, as in the American, Swiss and German cases of regional integration.

Confederated states

In terms of internal structure, every confederal state is composed of two or more constituent states, referred to as confederated states. Regarding their political systems, confederated states can have republican or monarchical forms of government. Those that have a republican form (confederated republics) are usually called states (like states of the American Confederacy, 1861–1865) or republics (like republics of Serbia and Montenegro within the former State Union of Serbia and Montenegro, 2003–2006). Those that have a monarchical form of government (confederated monarchies) are defined by various hierarchical ranks (like kingdoms of Iraq and Jordan within the Hashemite Arab Union in 1958).

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