1) No, the Pope doesn't give money for sucessful inquisitions. However, he does give money to Catholics every now and then, depending on several factors which I'm not totally aware of. I'm pretty sure it depends on the piety of the ruler, how many provinces you convert to Catholicism, and perhaps more. Also, he generally likes giving it to the smaller factions, in my experience, over larger ones. Not to say he won't support larger ones, just that he generally prefers to support the smaller ones. Again, this is just my own experience. Well, with one exception. One time, when I was playing as England, I spammed cardinals to the entire rest of the world's provinces, eventually converting over half of many foreing provinces to catholicism. He gave me 1k florins seven turns in a row at one point, and ten turns out of eleven. Oh, did I mention I was the only catholic nation left?![]()
2) Yes, in a way. The Pope generally has no problem with small catholic nations attacking the really large ones. There's a certain ratio that's supposed to be achieved, but I'm sure a more knowledgeable member could provide that. This is why the Holy Roman Empire often has much difficulty, as the Pope often bars them from nearly any practical methods of self defense, especially when under attack by many different kingdoms, as the HRE usually is.
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