Confederation

A confederation (also known as confederacy or league) is a union of political units for common action in relation to other units. Usually created by treaty but often later adopting a common constitution, confederations tend to be established for dealing with critical issues (such as defense, foreign affairs, or a common currency), with the central government being required to provide support for all members.

The nature of the relationship among the states constituting a confederation varies considerably. Likewise, the relationship between the member states, the central government, and the distribution of powers among them is highly variable. Some looser confederations are similar to intergovernmental organizations and even may permit secession from the confederation. Other confederations with stricter rules may resemble federations. A unitary state or federation may decentralize powers to regional or local entities in a confederal form.

In a non-political context, confederation is used to describe a type of organization which consolidates authority from other autonomous (or semi-autonomous) bodies. Examples include sports confederations or confederations of pan-European trades union.