If there's to be a confederal state, the old dutch form, slightly modernised(take out the stadthouder for example), would be one of the least damaging forms, imho.
William Temple, ambassador to the United Provinces, latter half 17th century:
"It is evident by what has been discoursed in the former Chapter concerning the Rise of this State, (which is to be dated from the Union of Utrecht,) that it cannot properly be styled a Commonwealth, but is rather a Confederacy of Seven Sovereign Provinces united together for their common and mutual defence, without any dependance one upon the other. But to discover the nature of their Government from the first springs and motions, It must be taken yet into smaller pieces, by which it will appear, that each of these Provinces is likewise composed of many little States or Cities, which have several marks of Sovereign Power within themselves, and are not subject to the Sovereignty of their Province; Not being concluded in many things by the majority, but only by the universal concurrence of Voices in the Provincial States. For as the States-General cannot make War or Peace, or any new Alliance, or Levies of Money, without the consent of every Province; so cannot the States-Provincial conclude of any of those points, without the consent of each of the Cities, that, by their Constitution, has a Voice in that Assembly."
"On résiste à l'invasion des armées; on ne résiste pas à l'invasion des idées." -Victor Hugo-
"Ideas spread, you can't stop them. An idea whose time has come cannot be stopped by any army or any government!" -Ron Paul-
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