Certainly. Let's look at Suville and Carelia. That was almost a war by proxy there. Well Tara has kind of done that already with, like I said, Carelia and Suville. CE doesn't like Carelia for obvious reasons and they liked Suville as Suville has accomplished all they can except for maybe take Carelia out, which they need CE for, thus they work for CE so as to maintain their power instead of ever have CE decide to attack them. Tara was directly funding Carelia andselling food to Carelia (towards the end even lending troops) to aid Carelia against Suville whose claims were obviously bull!@#$, and it came extremely close to CE getting involved. (They claimed they needed food yet would loot our bordering regions rogue which obviously isn't going to help them foodwise. )
Interesting. Much closer to conflict than I would have expected, but I'd be very surprised (and extremely pleased) to see them break the federation over that.