Sovereign states sometimes join in a loose union that preserves their independence while creating limited common institutions. That arrangement is a confederation. Central authority exists only by delegation and can usually be withdrawn.

Historical examples include the Articles of Confederation period in the early United States and the Swiss confederation before it evolved into a federation. Member states retain the right to nullify central decisions or exit. Decision-making at the center often requires unanimity or supermajorities, which can produce gridlock.

Confederations tend to form for mutual defense or economic coordination and to dissolve or tighten into federations when the loose structure proves inadequate. The European Union displays some confederal features alongside more integrated ones. The key distinction from a federation is the residual sovereignty of the members and the weakness of direct central authority over individuals.

A confederation’s central organs act on states more than on citizens.