A federacy is a form of government where one or several substate units enjoy considerably more independence than the majority of the substate units. To some extent, such an arrangement can be considered to be similar to asymmetric federalism.

The Kingdom of the Netherlands, commonly known simply as the Netherlands, is a sovereign state consisting of a collection of constituent territories united under the monarch of the Netherlands, who functions as head of state. The realm is not a federation; it is a unitary monarchy with its largest subdivision, the eponymous Netherlands, predominantly located in Northwestern Europe and with several smaller island territories located in the Caribbean.