A confederation, in modern political terms, is a permanent union of sovereign states for common action in relation to other states.[1] 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 and the central government, and the distribution of powers among them, is highly variable. Some looser confederations are similar to international organizations, while tighter confederations may resemble federations.
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