Loftegen 2 is divided into cantons, which select the members of the national legislature. The cantons, via their local councils, select members of the Council of Cantons (upper house) with each canton getting two members; while the people choose members of the National Assembly in proportion to their canton's population. In addition to crafting the law of the land, the national legislature nominates and elects the Prime Minister, and confirms appointed officials (upper house only).
More details may be found here:
Each canton is assigned a number of seats in the lower house of the national legislature (the National Assembly) in proportion to its population. Each seat is associated with a district within the canton it is assigned to. These districts are usually referred to as municipalities, although the terms borough and county are used in some cantons.
Each canton is free to chose its own method of electing members to the Assembly. Some hold a canton-wide vote and assign seats to the various political parties according to the proportion of votes they received; the rest vote by district and either require the winning candidate in each district to receive a majority of the votes cast and use a run-off voting system, or use a plurality or 'first-past-the-post' method.
The National Assembly nominates candidates for the office of Prime Minister, choosing as many as six names to forward to the Council of Cantons, who select the winner. Anyone may be nominated for the office (assuming they meet the residency, age, and citizenship requirements), including members of the National Assembly and the Council of Cantons, though if a member of either body is chosen, they must resign their seat at once. Nominees must accept the nomination, of course, and some (perhaps more than you might expect) decline the honor.
This is because the Prime Minister's oath of office is often (but not always) administered by Lady Zaharra herself, and unlike the Chief Justice of the Supreme Court (who administers the oath in her absence), she doesn't congratulate the new Prime Minister and shake his or her hand. Instead, she steps forward and whispers in their ear, "Remember, I'm always watching."