This actually bankrupts the AI. If you run the game in debug mode and switch factions to check treasuries, you will notice that the Danes suffer the most and are in the red after only a few turns - the same happens to the Aragonese as well. This is because of the heirs maturing and the faction controlling only one province.
In fact if you turtle a campaign as the Danes and try to take only the Scandinavian lands at first it is extremely difficult to stay afloat financially. Playing on huge unit size you will probably have to disband many of your own units in order to break even.
Yohei
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