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In the months following the fall of The United Provinces, the new Democratic Confederation has devolved from being a liberal republic commited to free and fair elections, as claimed during the war, into a military dictatorship under Chief Minister Anders Derte and his All-Gurdenian National Congress party, which dominated the first post-war elections, achieving over 75% of the national vote. Angered by what they percieved as betrayal, the Communist remnants from the first Civil War, employed by COGWP for their hatred of the monarchy, rebelled against Derte's government mere months after the end of the war in what is known as the "January Revolution" in the city of Medorov.

Although it was quickly suppressed, the revolt showed cracks in the GNC's perceived absolute popularity and gave way to a series of revolts and riots throughout the country which culminated with the creation of The New Federal Republic of Gurdenia in the Western Gruden Mountains, led by Marcus Kenin, a hardline republican and Marshall of Gurdenia before 2009 when he quit the armed forces in protest of the Coronation of Duke Gurdin I of Guritolia and the creation of The United Provinces. Kenin was offered his position back by the COGWP at the height of the Civil War, which he refused, later invoking his distrust of Derte's leadership. In light of Crockvanian victory at the end of the war and Derte's establishment as dictator of Gurdenia, Kenin gathered a militia of former COGWP supporters disenfranchised by the GNC's actions and launched a relatively succesful revolt against the Democratic Confederation.

Faced by rapid NFR advances in the southern provinces, the DCG sent troops in the largest deployment since the end of the war, pushing NFR forces back to the Gruden Mountains. The NFR halted their retreat and faced the DCG at the battle of The Treacherous Pass, which they won by ambushing the Confederate army from both sides, resulting in a humiliating defeat for the DCG and a relative stabilization of the fronlines.

In the east, taking advantage of the NFR situation, an army composed of Royalist veterans and other Gurdenian exilés, led by former prime-minister Tom Forten and secretly by the nephew of of the now retired King of Gurdenia, Duke Gurdin II of Guritolia, is now attempting to move into DCG territory, without sparking a full-blown war between Gurdenia and Guritolia, in hopes of re-establishing the defunct United Provinces...