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Is this region big enough for two small, pacifist, insignificant nations?

In seriousness, I have an idea for a larger, more powerful country which is nonetheless distracted by domestic social issues and whose power is curbed by a foreign-supported breakaway region (along the lines of East Germany) and some form of dragging imperial commitment. I still like the Nordic vibe, but Arthuria is too easy to roleplay as; I want to write as a more problematic country.