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==Government==
 
The government of Vaarschaft can be characterized as an elective monarchy within and subject to the overarching authority of the confederated Arkian Empire above it. The current Princess is Anna-Kristina Henschel de Vaar, elected in 2008. The Princess or Prince of Vaarschaft continues to be both the statutory and functioning chief executive of the principality, and is not considered to be a figurehead or symbolic leader. The institution of the Vaar elective monarchy is consistently popular among Vaar citizens, and is routinely more popular than the institution of the imperial crown of Arkalarius. The Princess does share power with an elected Legislative Assembly, which is commonly known (somewhat tongue-in-cheek) as ''Vaarliament'', however the Princess holds the power of veto over most matters. The Princess prepares and proposes a budget which is ratified by Vaarliament, and must attain the support of Vaarliament to impose or raise taxes and to appoint judges to the principality's judiciary. Certain matters—namely anything to do with Vaarschaft's Constitutional relationship with Arkalarius as a whole—are entrusted to Vaarliament and not subject to a veto from the Princess. Beyond this, however, the Princess has broad authority to act unilaterally in many cases, in matters such as policing, the military, the structure of the executive branch of government, and even such things as eminent domain.
 
Members of Vaarliament are elected in regular elections every 4 years. The members elect one of their own to serve as First Minister, who assists in the administration of the principality and who serves independently of the princess or prince of the day. While the Vaar monarchy is expected to remain politically neutral and unaffiliated with any particular faction or party, the First Minister is invariably the leader of the largest party in Vaarliament. The job of First Minister is often derided as being "irrelevant" or even "useless" considering the monarch's executive authority, but the First Minister's consent is always required for any Constitutional changes, and law requires that the First Minister not only be kept aware but "be present for the making of all major decisions of state" and be allowed access to the monarch at all times. The First Minister is generally considered to be the ''political'' leader of Vaarschaft whose job is to represent the will and desire of the citizenry to the monarch.
 
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