The Knootian Federation is a Federation, based on a commonwealth-like structure of a main state and dependencies. It is not to be confused with the Dutch Democratic Republic (DDR) of Knootoss, which refers to Knootoss proper only. The Euro is the single currency in the Federation.
The Federation was originally created by Prime Minister Vogels along with a number of other reforms to accomodate more long-term Knootian involvement in Knootian Colombia. At that time, the Federation was still known as the "Federation of Knootoss".
The Knootian Federation currently consists of the four constituent parts: the mainland European Knootoss, Knootian Colombia, the Protectorate of Ale-Yarok and the city of Nieuw Rotterdam on Mars. Prior to decolonisation, Nieuw-Nederland was also part of the Federation. The island of Europolis in Sisgardia also used to be a part of the Federation. It has been sold to Tarasovka but the Knootian military base still exists.
The statute confirmed the end of the already de-facto severed colonial relationship between Knootoss on the one side and the Tanah Burung on the other side. While the DDR never recognised Tanah Burung as an independent nation, the non-inclusion of the Knootian East Indies in the Statutes of the Federation made it a de facto recognition.
The Federation has a very limited central government which is responsible for a limited range of affairs as specified by the Statute of the Knootian Federation. In practice, this government overlaps to a large extent with the government of the Dutch Democratic Republic and its small executive service is housed inside the complex of the Ministry of Foreign Affairs.
The Head of State of the Federation is the Prime Minister of Knootoss, who is also the head of state of the separate constituent parts. The Prime Minister officially heads the executive branch (regering) of the Federation and each part individually. He or she is represented by a Governor-General in Ale-Yarok and by a Special envoy in Knootian Colombia.
The affairs of the Federation include:
- Monetary affairs and Knootian Central Bank (Euro) - See Knootian taxation system for more details.
- Mutual Defence (The Knootian Defence Force is a unified military)
- Foreign affairs
All other affairs are delegated to the national governments.
Knootoss has been critisised of 'colonialism' by its opponents in Ale-Yarok and Knootian Colombia, as well as on the international scene because there is no comprehensive plan for Knootian withdrawal and the full restoration of popular sovereignty in the protectorates.
These charges have usually been ignored by the Knootians, even if they have made some efforts by giving the legislative branches more powers in combination with reforms to make the executive and legislative branches more 'localised'. In Knootian Colombia these efforts have been seriously hampered by rebellions.