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The Empire uses its Elector Counts system. Their friendship isn't really important. What's important is gaining 10 of that Green stuff and they'll willingly offer to Confederate into you.
Regular Confederating places a Debuff on you after doing it to prevent mass Confederates in 1 turn. You also cannot Confederate if you're weaker than them.
You gain these through the dilemmas.
Once you reach the 10, the faction offers to confederate with you, which you can accept or decline for 20 turns, where they offer it again, but you gain something for that.
You'll get quests, battles, and dilemmas throughout the campaign to increase for them.
You have two of them, and some modifications to diplomacy.
# DIPLOMACY
You start off as pseudo allies. No one will outright declare war on you unless you are openly hostile. You can't confederate through diplomacy at all.
You still have happyness (how much they like you), but it's less important towards confederation, it's there more for trade and military access.
# Prestige
Prestige is basically a diplomacy resource, think of it as "diplomacy money". You do favors for people, you get prestige. You want to force people to do stuff for you, you spend prestiege.
You get this resource from combat, capturing settlements - especially human ones that aren't loyal.
Each new turn (after you receive your gold income) will have a chance at an event that will either ask you to spend prestiege for an advantage, substitute it with gold, or loose some bonus, but get prestiege.
# Fealty
Fealty is how close a nation is to either confederation, or seccession. There are a few ways to increase it.
1) Always have positive imperial authority (see below).
2) Events. Some cost money, others prestiege, others shift fealty +1 to A, -1 to B.
3) Say orcs take a human settlement. You can attack, and instead of occupying or sacking - you can return it to it's rightful owner. +1 Fealty.
Once fealty is at 0, it will declare war. Once it is at 10, it will ask you to confederate. You can decline confederation ant it will be offered again in 20 turns. As long as fealty is still at 10.
# Imperial Authority
This is a measure of how well you are seen by your fellow empire nations. As long as you have 2k gold on your next turn (with the next turn income added) and at least 1k prestiege - you will never loose authority - except for confederations.
If your authority is above 0, other nations will slowly increase fealty towards you. Otherwise it will stagnate or go down.
You mainly gain authority from events. Just wait and it will come.
# Confederation
Offered exclusively at 10 fealty (next turn after hiting 10). Accepting causes -3 authority. If you decline, it is reoffered in 20 turns - if fealty is still at 10 by that point.
So remember, never go to negative authority intentionally.
### GENERAL STRATEGY ###
Always try and have 2k gold on next turn (including next turn income). This is the max you'll have to pay on an event. This way you can keep increasing authority and fealty.
Try not to spent prestiege when it would take you under 1k. Sometimes it's ok to go -1 fealty for 200 prestiege.
After you have a stockpile of these resources, always aim to first increase authority, and secondly fealty. Wait for events, reconquer lost cities, conquer unloyal humans (the one to the left with the special prot).
Never confederate when you have less than 3 authority. Because they re-offer in 20 turns, but if authority goes below 0 - then fealty can decrease and confederation might not be proposed again.
With this strat, I conquered Reikland, and the two south eastern forts. With one province and two forts, I didn't fight a single fight for 60 turns (except greenskins and beastmen), but instead I just built my capital and played the political game. Very fun IMHO.