The most common and most likely answer to this crossword clue is the 7 letter word PRUSSIA
I've seen this crossword clue in Independent
P
R
U
S
S
I
A
More clues leading to the result PRUSSIA
- Former German state - American in Paris confused
- Former state having power over much larger one
- Militaristic state, country after power
- Old state publicity on southern island area enthrals American
- American in Paris remade in the old country
- Nation’s succeeding principle, principally for old state
- Old kingdom captured in coup — Russians moving capital West
- The rejection of perestroika is surprising for some old European power
- Old kingdom that's capital of poor country
- Once a state put pressure on another
Buddy explains!

The straight part
We know that "Old state" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case old state = prussia.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.