I have since extended my borders to hold southern France, which move allowed to me three armies and 1000 florins per turn.
I used this to increase the navy, and I then assisted my German allies in a war with Venice, where I lost all of my fourth army troops in a massacre.
The Italian units were simply far superior.. it was not fair.

But nevermind income!

Nevermind the Italians!

The Eastern Roman Empire, quite restored and holding more than half the known world, having provinces on all seas, has just declared war on little Iberia.
I am disillusioned, but I suppose the devastation of everything I created before the 13th century should make for a good AAR.

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Is it normal for the HRE and Byzantines to do so well in MedMod?

It is truly like the Western and Eastern Empires have returned - Venice and Portucale are the only middleweights left!