As stated in the above posts. Send a diplomat to Rome get an alliance and bump your relations up to perfect.
This will cost you few thousand florins, and every time your standing drops you will have to slip the pope a few more florins (usually about 500 on VH/VH) to get it back up again. Plus the cost of the Diplomat 100 per turn.
What you get for all this cash is the best ally in the game. So long as you keep the relations near perfect the pope will not stab you in the back (unlike all the other factions).
You can call crusades with all the benefits that brings, cheap units, extra movement points, positive traits ect.
You can attack any catholic faction. You will get the warning but if your standing is high he will not excommunicate you.
Any other catholic faction that persistently attacks you risks persistently
Alternatively you can ignore the pope and get excommunicated.
You can then attack anyone and not have to worry about the pope because he can not do anything worse to you than he has already done. (except perhaps invade).
And what has he done.
You no longer get any benefits that a crusade brings
You no longer get the opportunity doing missions from the pope and the benefits they bring.
Every catholic faction and now call a crusade against you. Any crusading faction that does becomes your enemy breaking any alliance / trade agreement. Thus your trade revenue drops.
Fighting off these armies will cost you time and money replacing your losses.
Every settlement you own will suffer public orders penalties resulting in you either reducing your tax revenue of making you increase you garrison.
I think there is (not sure) a drop in your generals loyalty, increasing the risk of some of your armies rebelling.
Give the two choices I know which way I would go. Once you make the pope your friend the small cost involved is a good investment.
But if anyone wants to do it the hard way........Why not try using all town militia armies.
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