In a confederal, each of the component states is

In a confederal system, each of the component states is virtually sovereign. This means that they have a high degree of autonomy and are able to make decisions independently of the central government. The central government in a confederal system is relatively weak and its powers are limited to those that have been explicitly delegated by the component states. Confederal systems are often used in situations where there is a need to balance the desire for local autonomy with the need for a central coordinating authority. An example of a confederal system is the European Union, where member states retain a high degree of autonomy while cooperating on certain issues through the central EU institutions.