The Teutonic Federation
The Federation's government is a Federal Republic, of which the Lord-President has 6-year terms, with no current max term limits.
The Federation has a Senate, which is made up of 27 senators, one from each state in the Federation. Each senator serves 4 year terms with no max term limit.
Elements of aristocracy remain in the Teutonic government. An obvious example is the addition of Lord to the title of President and the fact that as of the previous elections, almost all State senators are in some way related to the current state leaders and lords.
The Teutonic Federation is geographically fairly small, and in its current form dates to only a few years prior to the Great War, and was a Absolute Monarchy for hundreds of years. A revolution successfully (and somewhat bloodlessly) dethroned young Kaiser Arnfried von Hapsburg following the lack of military response after Lythasians seized a chunk of Teutonic land. Historically a very militaristic society, and rightfully so, the Teutonic origins are that of a crusader nation. Despite their religious origins, the nation today is for the main part atheistic with some states holding on to their religion. They have always maintained a proud military with a large standing army relative to their size and joining their army nets significant benefits during and post-service, making the 4-year stint almost mandatory for those who wish to go anywhere with their lives. Most Teutons are highly nationalistic and military service is looked upon with great respect and honor.
To maintain such a large fighting force the Teutons early on transitioned from crusading to establishing the Teutonic trade league. The current economical system is that of a free-market economy. The iron rich mountains on which the core of the nation rests has provided them with a booming iron and steel trade, as well as other minerals and metals. The downside of this is that with their large population density, they are somewhat reliant on trading for food due very little arable land, their only real domestic source of food being fish from their chunk of coastline. Up until recently the Teutonic Federation had abstained from exporting their military technology, and as their steel and iron market are slowly declining, they have found a sizable market in providing (somewhat downgraded) military goods. There is a heavy focus on air and land warfare and a distinct lack of interest in developing the Teutonic navy until very recently due to the inability to strike back at the Lythasians during the Great War. To protect its waters the Teutonic Federation only has a small green-water fleet of 'somewhat modern' vessels used to escort large masses trading vessels in and ensure coastal safety from pirates.
Domestic Political Conflicts:
The Lythasian invasion prior to and during the Great War led to a quick embargo of all good traveling to and from Lythasia. This has met some resistance due to potential trading markets inside of Lythasia despite the tensions following the war.
With the new government barely a decade old, some states still hold pro-Monarch sentiments and there is a moderately strong cause for re-instating the Kaiser Arnfried in a constitutional monarchy.
The current Lord-President Walter Honecker (3 years into his second term) is a strong proponent of Space exploration and believes becoming a leader in Space technology will allow for more commercial enterprises to develop. He has established a budding Teutonic Space Administration which is projected to put the first man in space in just over a year. The majority of Senators believe this also to be the case, though there are a minority who believe governmental resources should be placed elsewhere.
The Senate is very split on enacting policy to further nuclear weapon research, with a nearly 50/50 split with a slight in favor of progressing nuclear weapons research and the Lord-President on the side of the pro-nuclear, the Senatorial elections in less than a year could tip the balance in favor of restricting ICBM and nuclear weapons research.
History of the Great War:
During the Great War the Teutonic Order, as always, wanted to remain as neutral as possible. They saw the outbreak of war as a chance to regain their lost territory and immediately began mobilizing reserves. Though the mobilization was fast, it wasn't nearly fast enough. The weak fortifications built up before the war along the state of Hainaut's border held for only a few hours to a few days against the massive Lythasian advance. Both militaristic nations had highly capable armies and generals, which fought for weeks and weeks, but the slight technological advantage as well as the highly nationalistic populace revolting and forming militias in occupied territories eventually allowed the Federation to push back to the now heavily fortified Hainaut border. At this point the Teutons reluctantly broke their relative neutrality and called upon the aid of the Kingdom of Britannia, a long time trading partner, to assist in disrupting supply lines and supplying guerrilla fighters behind Lythasian lines. It worked and the Lythasians were pushed back to the beach, and eventually off the mainland. The next problem was striking back, in no way did the Teutons have any capacity to cross the expanse of water between them and Lythasia, and were barely able to thwart another beach landing attempt. They had to simply wait, and hope their Air Force could do enough damage until another world power stepped in, hopefully on their side. The Federation attempted to maintain neutrality and trade with other warring nations, and because of their history as a diplomatic intermediary and that they only went to war in self defense, the peace talks that ended the war took place in the Teutonic capital.
Historical Relationships With Other Nations:
The Teutonic Federation started out as a crusading order, but didn't last long as such. All of its mainland neighbors were safe, but they did attack and raid smaller island nations such as Lythasia. This spoiled relations with Lythasia for a long time, but they eventually reconciled somewhat. The Teutons made the transition from hostile crusading order to a conglomeration of states in what quickly became the local trading hub. The Teutonic states attempted to maintain a policy of neutrality and open trade, and for the most part were successful. They don't have any significant allies or enemies aside from Lythasia. Other than that, the Federation has for a long time served as a diplomatic intermediary for warring nations, provide shuttle diplomacy service and a place where proximity talks can be held.
I went a bit overboard but I couldn't find a way to shrink the concepts I was trying to get across down.