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In 1984 three Spanish Juntas: Jaca, Calahorra and Tudela joined forces to tackle the Basque expansion. It was the origin of a new union that eventually will be called the "Confederación del Río Ebro" and after "Confederación Ibérica" (Iberian Confederacy).
In 1984, Basque separatists had seized power in Pamplona (where because of the radioactive contamination had moved the Basque government) and Logroño. With the annexation of Navarre by Euskadi a rival junta was formed in Tudela chaired by Juan Manuel Muñuzuri Arza, Juan Cruz Allí and Jaime Ignacio del Burgo. In parallel, the local Board of Logroño chaired by Joaquín Pérez-Caballero Espert and José Ignacio Sáez Pérez bound by the humanitarian crisis was forced to evacuate and move to Calahorra, with the power vacuum a division of the Basque militia took the control of territory and unilaterally annexed to Euskadi with the pretext that had been part of Navarra for centuries in the middle ages. The two "Juntas" of Calahorra and Tudela asked for assistance from neighboring Jaca council that had a regiment of Cazadores de Montaña and other surviving military forces. In 1985 the combined forces of the three Juntas captured Pamplona and Tafalla and the Basque government was forced a ceasefire signed in Leyre. Peace did not last much longer than just a month later break out the "Guerra de las Banderas" (Flags War), which divided the confederation between the "Tradicionalistas" (traditionalists) of the smaller Juntas and the "Unionistas" of the militarist government of Jaca. This circumstance was used by the Basques to resume hostilities and in 1986 Pamplona and Tafalla was recovered by Basque militia. Jaca's government, faced with the Confederate traditionalists was forced this time to sign the armistice of Estella. These two wars are called "Vasconadas" in Iberia and "Independentzi Gerra" (Independence War) in Euskadi.
Flags War lasted from 1985 to 1989, until the government of Jaca and the traditionalists agreed ceasefire and the start of talks that culminated in the Covenants of Olite´s Castle, which established the Confederate government the way since then endures. In parallel with the War of the flags took place from 1986 to 1996 the Yoke´s War (the yoke and arrows was emblematic of the Phalange), against the falangists who ruling in Burgos and their satellites, the phalangist warlords of Calatayud, Molina de Aragón, Daroca and Sigüenza, who gradually conquered by the Iberians. Finally in 1996 the municipality of Soria joined the Confederacy after expel their fascists rulers.
From 1991 to 1997 there was a new war with Euskadi, known as "Tercera Vasconada" or "Guerra del Chupinazo" (because it began with an incident during the celebration of the renewed Fiestas de San Fermín). The Confederacy failed in the attempt to take Pamplona, but regained Tafalla and expelled the Basques of Logroño, recapturing La Rioja.
In 2007 the Confederation was extended by the Aragonese Pyrenees absorbing the Junta of Benasque.
Iberia is a confederation of small councils and cantons, which enjoy broad autonomy. These cantons are: Viella, Benasque, Boltaña, Ejea de los Caballeros, Tarazona, Calatayud, Daroca, and Calamocha, all assigned to the Aragonese nation. Tudela and Tafalla assigned to the Navarrese nation, and Logroño, Calahorra, Soria, Almazán, Sigüenza and Molina into the Castilian nation.
The confederal government based in Jaca maintains the direction of foreign policy and defense. The Presidency of the Confederacy's only representative. The Executive of the Confederation is Polysynody type, forming several councils: War, Justice, Agriculture, Reconstruction, Money, Health and Training (education and culture), each autonomous in their respective jurisdictions and the State Council (domestic and foreign policy), consisting of the chairmen and chief secretaries of the other councils. Confederal Parliament's called "Parlamento Confederal" is the true power of the State, is divided into three national chambers: the Navarrese, Castilian and the Aragonese, bringing together representatives of each community which once formed part of each of the regions in which Spain was divided, and also added the bishops of each region. This Parliament elects the president of the Confederation, the chairmen of the various Councils and the judges of the "Audiencia Suprema" (Supreme Court).
Because of the peculiar structure of the Iberian Parliament, political parties are fundamentally nationalist divided in turn by their more or less leftist or conservative.
Since its foundation the Iberian army has been better trained and organized. Because its foundation there were a number of notorious former military from the Regimiento de Cazadores de Montaña (Hunter Mountain Regiment) had its garrison in Jaca and guardias civiles from the garrison of Huesca and more fugitives of other regiments.
The economy is agricultural, irrigated crops that characterized the economy of the region before 1983 is now protected in greenhouses. Instead livestock has completely disappeared.
The main economic activity is recycling practiced in the domestic territory or by plundering raids to the abandoned facilities inside the Peninsula (either directly organized by the state or by private "companies"). Also Logroño and Soria have become centers of commerce of the looting products from the inner Peninsula practiced by nomadic people (specially gypsies), Benasque has been developed as a center of trade with neighboring Andorra and place of entry of the goods from outside the Peninsula.
Work organization is based on a mixed system that combines the performance of forced work commonly said "impuesto de sudor" (tax of sweat) - organized by the state and local authorities - and private work. The population must work for the state for a series of periods and for local authorities (the cantons) during other periods, with the time left for free use in their private business. Men and women must work for the state and local authorities over a number of weeks each year in a number not exceeding three months, which varies with the working abilities of each citizen, the division of labor between the state and cantons is established according to agreements whose violation by either party is the subject of ongoing friction between central government and local authorities. Common criminals and prisoners of war forced labor met for the duration of their captivity, are in charge of state who can be transferred at the discretion of local governments.
The currency (peseta ibérica) is almost non-existent, was coined only for its symbolic value, for the large payments it used foreign currency, for small payments it used barter.
Iberia has a fairly small population, estimated at just over 475,000 people, widely dispersed population in small towns (Soria and Logroño were only provincial capitals before 1983). Jaca, capital of the Confederation has developed more than other cities, but its population barely exceeds 35,000.
The confederation includes a refugee population of multiple sources for their relevance highlighting the French community, Catalan, Basque (Alava especially) and the southern Spanish. The use of French and Catalan has increased to the point of being the co-official language in the cantons of the Pyrenees.
The confederation is the main adversary of Euskadi, who disputed the possession of Navarra. Maintains a distant relationship with the Spanish Republic (as did their predecessors) and has recently initiated an approach to Andorra, which is its main outlet to the outside.
The main foreign policy line of the Confederation is to get an outlet to the sea or the Atlantic, so the faces and Castilla-León Euskadi, either to the Mediterranean what antagonizes against the Republic of Spain. Recently, however, have begun talks in Cartagena about the future distribution of areas of expansion between Spain and Iberia, as these agreements are known throughout the region of Aragon and the former provinces of Tarragona and Lerida in Catalonia as well as north of the Valencian province of Castellón constitute the Iberian space for future expansion, while the rest of the Valencia region and former province of Barcelona (in the manner of an island) would be integrated into Spain. But talks are still far from over.