I was just about to mention EBII..
As Krusader said, they're planning on using Medieval II's free-upkeep system to enable cheap (free) garrisons.
In a perfect world a script could be written that simply adds +100 to the upkeep of every unit not inside a city or fort (actually, I'd halve the penalty for forts, but you get the idea).
So that would mean your city garrisons (3 units of hoplites) would be free, your newly trained cavalry (in the same city) cost whatever they cost now, your army already on its way to the front would cost over a 1000 more than it used to, and your border garrisons (ie fortresses at strategic locations) would cost slightly more than they used to, representing the luxury of actually having 'spare' troops (I say spare because they're not actively involved in an assault or campaign, nor are they 'policing' your cities).
edit: and this makes sense - a rich state can afford a standing army, a small poor one cannot. A nation constantly at war for decades is going to feel the strain, a peaceful one wouldn't. The small free-upkeep garrisons won't stop enemy forces for long, but it should be long enough to allow you to relieve the city with another army (or even the combined garrisons of nearby cities).
However, I think only certain units will have the 'garrison' quality (free upkeep in cities), and I don't think they'll be Silver Shields and Principes..
Btw, are there any plans on utilising the city/castle system?
Personally I don't see how it could be implemented, but I can imagine 'castles' now being military settlements and 'cities' being just that, cities.
As I said though, I don't think it's very appropriate for the time period..
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