The Empire maintains close relations with the Tsar of Kislev and the Burgomeisters of Marienburg. The former stands between The Empire and the hordes of Chaos in the northern wastes, while the latter controls access to vital sea-trade links.

The Emperor And His Advisors
In theory, Emperor Karl-Franz I has absolute control over all aspects of Imperial society. In practice, however, his power is limted by a whole range of special privileges granted to various offices by the edicts of his predecessors and the Crown is only really maintained out of a strong national sense of historical necessity - the last time The Empire lacked a recognised figurehead, it was almost wiped out by the Incursions of Chaos. When he stepped upon the throne dias in the Imperial Palace, Karl-Franz swore an oath that he would "at all times govern and maintain the majesty of The Empire". But this has proved to be no easy task.

The Council Of State
Broadly speaking, the Emperor has the power to set taxes, raise armies, and to issue edicts. To assist him in the day-to-day running of the Imperial court and to advise him on matters financial, military, and so on, the Emperor appoints a Council of State. The members of this council, which always includes the Grand Theogonist of the Cult of Sigmar, are selected from the families of the most of the most ancient lineage. They have no constitutional authority, but, nevertheless, still wield great power, since the Councillors control access to the Emperor and - whenever they manage to speak with one voice - can exercise considerable influence on him. The Grand Theogonist, who is arguably the most powerful man in the Empire, is usually behind the Council's more urgent recommendations...
  Emperor Mattheus II, the grandfather of Karl-Franz I and a strong believer in democratic principles, actually attempted to draw up an Imperial constitution based around the Council. This merely aroused the suspicion of the Provincial Electors and the idea was quietly abandoned. However, it takes a strong Emperor indeed to go against the advice of a united Council.

Imperial Plenipotentiaries
The Emperor occasionally also appoints special representatives in the provinces (known as Imperial Plenipotentiaries) and, in some cases, in the provencial towns as well. These appointees serve a dual function: on the one hand, they might be loyal servants looking after the Emperor's interests and keeping tabs on his so-called servants and, on the other, they could be ambitious, Machiavellian types sent to quiet back-waters to keep them out of harm's way. Whatever the reason for their appointment, it is generally believed that Imperial Plentipotentiaries are merely court favourites and few people accord them any respect.

The Electors
The real power in the realm resides with the 15 Provincial Electors (of whom, just to complicate matters, the Emperor is one). These are responsible for choosing the successor of the current Emperor. Political necessity demands that they pick someone who will not actually try to use his powers properly and the choice normally falls on the least accomplished of their number. In practice, this means that the slightly eccentric Holswig-Schliestein family can count on holding office for the foreseeable future; the other Electors regard them as unambitious and the safest bet for the continuation of their own privileges. For their Electoral power is largely a secondary function of their real positions; all the Electors are either important provincial rulers or magnates of the Cult of Sigmar or Ulric. As history shows, there is much rivalry between the provinces and plenty of contention between the two Cults - although, in the latter case, the Grand Theogonist of the Cult of Sigmar can be said to have tipped the balance in his favour by getting his two "lieutenants" accepted as Electors, while the Cult of Ulric is represented only by its High Priest.
  The 15 current Electors, together with their titles and seats of power are:
  1. Emperor Karl-Franz I, Grand Prince of the Reikland -  based in Altdorf; age 35; named heir is Prince Wolfgang Holswig-Abenauer, his sister's eldest son.
  2. Grand Theogonist Yorri XV of the Cult of Sigmar - based in Altdorf.
  3. Arch Lector Aglim of the Cult of Sigmar - based in Talabheim.
  4. Arch Lector Kaslain of the Cult of Sigmar - based in Nuln.
  5. High Priest Ar-Ulric of the Cult of Ulric - based in Middenheim.
  6. Grand Prince Hals von Tasseninck of Ostland - based in Wolfenburg; age 62; named heir is his only son, Prince Hergard.
  7. Grand Duke Leopold von Bildhofen of Middenland - based in Carroburg; age 46; named heir is his younger brother, Baron Siegfried.
  8. Grand Duke Gustav von Krieglitz of Talabecland - based in Castle Schloss (just outside the town of Herzig); age 22; no named heir.
  9. Grand Baroness Etelka Toppenheimer of Sudenland - based in Pfeildorf; age 51; named heir is the adopted son of distant relative, Baron Olaf Sektliebe.
  10. Graf Alberich Haupt-Anderssen of Stirland - based in Wurtbad; age 15; no named heir.
  11. Grand Countess Ludmila von Alptraum of Averland - based in Averheim; age 77; named heir is her eldest daughter, Baroness Marlene.
  12. Graf Boris Todbringer of Middenheim - based in the Middenpalaz in Middenheim; age 57; named heir is his youngest son, Baron Stefan.
  13. Duchess Elise Krieglitz-Untermensch of Talabheim - based in Talabheim; age 31; no named heir.
  14. Countess Emmanuelle von Liebewitz of Nuln - based in Nuln; age 27; no named heir.
  15. Elder Hisme Stoutheart of Mootland - the Halfling Elector.

Although the Electors are in competition for much of the time, their position unites them against the Emperor, the independent towns, and the Guilds. Since the power of the Elector derives from the Provinces/City States, the title is hereditary - although there are no particular dictates as to how the heir must be chosen. In theory, the Emperor may veto any choice, but, in practice, this is an extremely rare event - without the support of a sizeable majority of the Electors, the Emperor has no hope of enforcing such a veto. Emperor Leopold was the last Emperor to try such a move and, in his case, the threat of civil war was enough to make him back down.

The Prime Estates
When Boris the Incompetent attempted to make his favourite racehorse a Duke, the other Electors unanimously voted that they needed some eyes and ears in the capital to warn them if the Emperor was planning any other "foolishness". Accordingly, they each dispatched a special representative to Altdorf to form a watchdog body, called the Prime Estates. The gathering meets in a splending building in the Imperial captial and is ostensibly open to any person of recognised noble birth, although lackeys of the Emperor are usually carefully excluded. The Prime Estates has now become a de facto supreme court - all Imperial edicts are carefully studied ("in the interests of State") and reports are sent back to the Provincial Electors. Since the latter can effectively refuse to police any edict they don't like, the Prime Estates has an almost complete veto on the Emperor's right to issue commands.
  And with the Prime Estates there to hinder the implementation of Imperial edicts, the Emperor suffers even greater frustration. Of course, the Prime Estates can be said to have served a very useful function sometimes in this respect, given that Karl-Franz - as all Emperors - is occasionally given to crazy schemes, along with those which might have some merit. Some of the more controversial edicts have included the Halfling Licensing Proclamation, by which no one was allowed to employ Halfling cooks without a license (since 99% of the nobility have Halfling cooks and since there were howls of protest from the Moot, this particular edict never got very far), and the imposition by Empress Margaritha of an Anchor Tax, by which ships mooring on The Empire's rivers were to be the subject of a 15 Crown tax per anchor (the Prime Estates enforced this for three months, but stopped when ship-owners began dropping their anchors overboard rather than pay and it proved dangerous to moor in any town or city harbour, as loose ships drifted all over the place).

The Provinces
As has already been implied above, the great City States of Middenheim, Talabheim, and Nuln operate just like the other Electoral Provinces. The only real difference is that their populations are obviously somewhat more concentrated. The remaining provinces which make up the rest of The Empire are all attached to one or other of the Electoral Provinces. These are:

Accordingly, the rulers of these areas are responsible first to the relevant Electoral ruler and secondly to the Emperor. In other words, if Karl-Franz wishes to find fault with the behaviour of Chancellor Dachs of Ostermark, he will raise the matter with Grand Duke Gustav of Talabecland. These provinces are effectively covered by the same immunities and exemptions as the 'parent' province, whatever their status.
  The larger provinces are subdivided into a variety of minor counties, baronies, and leagues, with administrative governors appointed by the provincial rulers. These in turn may appoint town governors, although this practice is not always followed for every town, some of which actually elect their own town councils.
  Considerable rivalry still exists between Electoral Provinces. Only the rulers of Averland and Sudenland could honestly claim to have no pretensions to either the Imperial crown or the extension of their own boundaries. Fortunately for the unity of The Empire, however, these ambitions are currently well-suppressed - the memory of years of bitter civil war is an important factor in this regard - and political machinations are conducted very discretely.
  The provincial rulers are largely able to exercise their authority as they see fit within the boundaries of their domains. Some are more independent than others, thanks to special privileges which previous Emperors have granted their provinces. For example, the City States of Middenheim and Talabheim send no taxes to the Imperial coffers and only have to supply troops when all the other provinces have been exhausted. The County of Wissenland, on the other hand, is little more than an administrative sub-division of the City State of Nuln.
  The style of government also varies from province to province. Talabecland, for example, is rigidly autocratic, while Sudenland has many democratic institutions. In general, however, these variations have little meaning for the average Imperial citizen: the rich are still the most privileged, while the poor do all the work!

Towns
As far as most people in The Empire are concerned, the most important arm of government with a direct bearing on their daily lives in the nearest town. This is the place where taxes are collected, military service is rendered, trials are held, and merchandise is sold. The exact governmental structure varies from town to town. Some have autocratic governors appointed by the provincial ruler, while others have elected councils; some have Imperial Plenipotentiaries - direct representatives of the Emperor and others seem to muddle along with no obvious administrative structure at all.
  Normally, towns hold their charter from the Emperor - Kemperbad in the Reikland is the largest example - or are simply part of the political structure of the Province. Some of the larger towns, however, may have independent exemptions and privileges that defy the Crown or any Provincial authority. The indepedent towns can be a thorn in the flesh of all higher authorities, since their agents cannot operate to collect taxes or raise troops from them. Such towns have been known to be powerful enough to wage war against provincial rulers; all have strong military bodies based upon the Watchmen. Since no rural magnate can ever feel satisfied with an independent town sitting on its wealth and status, it has happened on many occasions that provincial rulers have looked for any excuse to interfere. When, following a disastrous harvest, Streissen suffered from an outbreak of bread riots in the year Karl-Franz came to power, Grand Countess Ludmila of Averland made it quite clear that she would only send her troops after the town government had agreed to pass all its privileges and authority to her. The massacre that accompanied her take-over is one of the more infamous chapters in recent history.
  The town's authority (whatever its structure) does not end at its walls. All the villages and farms within a 10-20 mile radius look to the town for protection and, in return, are subject to its laws and taxes. However, these are often monitored and interfered with by higher authority.

Guilds
The fourth 'power' in the social mix of The Empire are the Guilds. In all towns, the Guilds are among the most important institutions. They normally have a monopoly on the labour market in the trades with which they are concerned and Guild membership is compulsory for anyone wishing to ply a trade in the town. In return, the ordinary guild member gains a powerful voice, which town councils tend to listen to. When a large job needs to be undertaken - particularly one commissioned  by the town council or by another Guild - it is traditional for an approach to be made to the relevant Guild, rather than direct to a craftsman. The Guild negotiates the cost and rates of pay and parcels the labour out among its members on a sub-contract basis.

Varieties Of Guilds
There are Guilds for just about every career going - Alchemists and Artisans, Merchants and Seamen, and, of course, Thieves and Lawyers.
  The craft Guilds (for example, Metalworkers, Carpenters, Cartwrights, Masons, Jewellers, and Tailors) keep control over standards of workmanship and every apprentice is examined by an official of the Guild before being granted journeyman status and allowed to set up shop. The craft Guilds also require that any craftsmen claiming to have served an apprenticeship elsewhere must present them with testimonials and letters of introduction from the Guild of which he or she was previously a member.
  The labour Guilds (for example, Labourers, Teamsters, and Stevedores) are not so strict in their requirements, since the same standards of craftsmanship do not apply to their work. They do, however, keep close control of their members' activities and protect their monopoly of labour ruthlessly.
  The Merchants' Guild works in much the same was as a craft guild, overseeing apprenticeships and so on, but its members are free to seek business as they please. The majority of mercantile operations are family-based and, outside these families, new members are not encouraged. Occasionally, the Guild may intervene when competition or disputes between two or more members threaten its unity or reputation, but, by and large, the Merchants' Guild is content to let its members conduct business as they see fit.
  All Guild members pay an annual membership fee, which helps to maintain the Guilds' premises. These range from lavish town-houses to well-concealed, rambling hideaways to small rooms at the back of an artisan's shop. Additionally, apprentices must pay a fee in order to be examined by a Guild official before progressing to full membership and being allowed to ply their trade in the town. In some places, members of craft Guilds are also expected to do one day's work per year for the Guild, for which they are not paid.
  Those foolish enough to operate without the backing of a Guild can expect all kinds of trouble - a verbal warning is the first step, followed by threats of physical violence, which are swiftly carried out if the person concerned continues to be recalcitrant.

Guild Structure
The internal structure of each guild varies enormously across The Empire, although most of those in the Reikland follow the same basic pattern, with only minor variations. A Guild Council, comprising a dozen or so of the Guild's most senior members, elects the Guild Master, who chairs regular council meetings which make all policy decisions, from setting membership fees to holding ad hoc trials for those who transgress Guild laws. Vacant places on the Council are very rare - usually following the death of one of the members - and tend to be filled according to the dictates of the remaining members, who meet in closed session to make their decision. In small towns and villages, however, there might not be enough members to justify such a formal structure and, in many such cases, a town or city guild will extend its control to cover the nearby villages.
  The Guilds' collective power is subtle, yet potent. Since they are the representatives of skilled labour and monied wealth, they have managed to alter the will of the Emperor, provincial rulers, and town authorities on many occasions. Guilds have been known to become involved in riots, revolts, and strikes as more blatant manifestations of their strength and it is widely recognised that there is a struggle for ultimate power between the rural propertied interests - represented by the nobility and, to an extent, the Crown, the urban oligarchies who run the towns, and the Guilds, especially where the latter are excluded from offices and privileges granted to the former two.

Taxes & Revenue
Taxes may be levied at a variety of levels: the Emperor sets taxes to maintain his court and finance his armies; provincial rulers set taxes to maintain their courts and armies, as well as to build roads, canals, and so on; town councils set taxes to maintain their Watch and Roadwarden patrols, as well as things like town walls and municipal buildings and services.
  Not surprisingly, the list of things which can be taxed is endless - Imperial Citizens pay an annual poll tax of one Crown per person; tolls are charged for the use of roads and river locks; gate taxes are charged on all non-inhabitants entering/leaving towns; merchants are taxed on merchandise sold; and so on. Since it is reckoned that only the unpropertied, non-Guild, working class actually pays all the taxes imposed upon it, the burden on the poor is unbelievably great. The nobles pay hardly any taxes at all and exemptions free many towns and Guilds from specific taxes, which is generally why the Emperor is forced to have new taxes devised so frequently.
  In fact, there are so many provinces, cities, individuals, and offices with exemptions from taxation and the requirement to supply troops that there have been long periods when the defence of the realm was severely compromised. Karl-Franz, like many of his predecessors, has instructed his treasury officials to invent new taxes (on printing, gunpowder, bordellos, and pit-fight gambling) to raise money and then been forced to grant exemptions as interest groups have united to defy him. New taxes are devised every month and there exists a professional class of confidence tricksters who travel from place to place, collecting taxes the Emperor hasn't actually imposed yet...