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A Federal Empire is a type of nation which is governed by a constitutional monarchy, and the constitutional monarchy forms part of the Federal Government; governing on a National level above the State Governments.
In Tesseria, the Government is similar to United States except that there are two executive offices of almost equal authority, the Kaiser (who is elected by the Senate for life) and the Chancellor (who is elected every year by the Electoral College). The Kaiser is superior to the Chancellor, as he may veto any uses of the Chancellor's authority (this rarely happens).