I'd say you do need a central quick-response force (or two) so you can dispense with those oversized garrisons. In EB garrisons often do not make up for the increased taxes you can levy, so you should use the minimum (and cheapest) possible garrison. Use spies to anticipate enemy troop movements and fleets to block your lanes so your quick-response force is already moving towards the invaders before they have even landed (but be aware of the enormous upkeep on ships).
The problem is that the A.I. of R:TW is dumb. Do not expect reasonable diplomacy: it hates the player and will often ignore everything in order to get you. It also recruits way too many units, so it gets cash bonuses and population discounts to prevent it from crippling itself. Don't get into a war of attrition with the A.I., as it can easily win that. Go back on the offensive and take out their economical and recruitment centers. You may want to consider a naval invasion in Iberia (modern Spain and Portugal) itself. Pay special attention to provinces with mines: these are the most easy source of income in EB.
Welcome to the .Org, and to EB.
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