What does the cryptic crossword clue "Fear led to new form of government (7)" mean?

The definition is "Fear". The wordplay uses an anagram. anagram of FEARLED ("Fear led") [anagram: "new"] = FEDERAL; definition: "government" The answer is FEDERAL.

Fear led to new form of government (7)

Guardian Cryptic #25605 | 4 Down | 2012-04-09 flower

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