How did the teams get selected in the European Chess Club Cup?

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For example, Cramling, the Muzychuk sisters, and Paehtz are on the Monte Carlo team instead of Sweden, Ukraine, and Germany. Also, how does USA and Israel fit in all this since they are not in Europe?

Then, the next question is, why even have flags or country associations like Spain, Azerbaijan, and Turkey? Why did those countries keep members of the same country?