Confederalism is a political system in which multiple independent states or regions come together to form a union while retaining significant autonomy and sovereignty. In this arrangement, the central authority has limited powers, primarily focused on issues like defense and foreign relations, while individual member entities maintain control over most domestic affairs. This structure promotes cooperation among states but can lead to challenges in decision-making and governance due to the lack of a strong central authority. Examples of confederations include the early United States under the Articles of Confederation and the European Union in certain contexts.