Losaco

**Losaco**, officially the **Duchy of Losaco** (Maldonian: *Duché de Losaco*; Regian: *Duchia di Losaco*), is a microstate located in Southern Eurea, bordered by Maldone to the northwest and Regia to the southeast. As a city-state, it does not have any cities located inside of it, but government offices are located in the neighborhood of La Città. Losaco has a population of about 70 thousand inhabitants.

The Duchy was first formed in the 14th-century as a Regian-speaking city-state. After the unification of Regia, the Duchy resisted attempts at joining the unification process, and this decision was respected by the Regian monarchy. Over the ensuing centuries, Losaco developed closer ties to Maldone, rather than Regia, attracting numerous Maldonian travelers and residents. Left to develop on its own, Losaco's economy grew rapidly in the 20th-century due to its status as a tax haven, attracting foreign businesses and wealthy immigrants, and its emerging tourism industry. Due to its tourism industry, powered by the country's beaches, warm climate, and thriving nightlife, tourists outnumber native Losacans on a day-to-day basis in the country. Losaco also has the most hotels per capita of any nation, and is home to more hotels than apartments or houses. By the 21st-century, Losaco had become the wealthiest nation in the world.

With its initial establishment, Losaco functioned as an absolute monarchy run by a Duke. Following reforms in 1910, the country became a constitutional monarchy, although the powers of the Monarch are still much stronger in Losaco than in other constitutional monarchies. The Monarch serves as the head of state of Losaco, although they act as more than just a ceremonial figurehead. The Monarch is tasked with appointing the Chief Counsellor, the head of government, who serves as a quasi-chief of staff for the Monarch. Unlike in other parliamentary systems, the Chief Councillor is never a member of parliament and is a nonpartisan position; additionally, they do not even have a be a Losacan citizen, and most often are Maldonian nationals. The Chief Counsellor also does not have to be confirmed by parliament, nor do any of the Monarch or Chief Counsellor's other appointments. The Chief Counsellor is tasked with appointing a council of ministers (referred to as "counsellors"), directing the nation's foreign affairs, commanding the police, and presiding over the National Council (with voting powers in the case of a tied vote). The National Council is the 25-seat unicameral legislature. The National Council holds much less power than legislatures do in other parliamentary systems, only being able to draft budgetary proposals; they vote to pass or reject legislation drafted by the counsellors which are appointed by the Monarch and Chief Counsellor, but cannot draft their own legislation.

Losaco does not take record of the ethnicities of its residents. However, approximately 64.5% of the population are citizens, while 35.5% are not. Losacans are the inhabitants of Losaco, but are referred to as a national identity, not an ethnic group. Most Losacans are ethnically either Maldonians or Regians, although there are large amounts of people of Danian and Vasalonian origin who have resided in Losaco for generations, in addition to more recent immigrants of various ethnic backgrounds. The two official languages of Losaco are Maldonian and Regian, both Proto-Regian languages. Combined, these two languages are only spoken natively by approximately 61.4% of the population, but 82.2% can communicate in at least one of them, with them functioning as a *lingua franca* for Losacans. Losaco also does not take records on the religiosity of its residents.