The confederal system of government is a political arrangement where independent states or regional governments form an association or union for common purposes, while retaining a significant degree of sovereignty. In a confederation, the central authority has limited powers and derives its authority from the member states. Decision-making is usually made by consensus or through representative bodies that include representatives from each member state. The confederal system allows for decentralized governance and grants considerable autonomy to the member states, making it distinct from a unitary or federal system. Examples of confederal arrangements include the European Union (EU) and the former Confederate States of America during the American Civil War.