A study of the center symmetric phase of SU(2) Yang-Mills theory is pr
esented. Realization of the center symmetry is shown to result from no
n-perturbative gauge fixing. Dictated by the center symmetry, this pha
se exhibits already at the perturbative level confinement-like propert
ies. The analysis is performed by investigating the dynamics of the Po
lyakov loops. The ultralocality of these degrees of freedom implies si
gnificant changes in the vacuum structure of the theory. General prope
rties of the confined phase and of the transition to the deconfined ph
ase are discussed. Perturbation theory built upon the vacuum of ultral
ocal Polyakov loops is presented and used to calculate, via the Polyak
ov loop correlator. the static quark antiquark; potential. (C) 1998 Ac
ademic Press.