Initiative Points: these points control how active you can be during a given turn. They represent the capability (willingness?) of your government to carry out what you command. Initiative points are limited and you cannot spend more than you have without risk. They replenish each turn, but the recalculation could change the number you have available from turn to turn based on a variety of circumstances. Not every action consumes Initiative Pints (IP). They cannot be banked.
Actions that will cost IP and unless otherwise noted the cost for each is 1 IP:
• Add or change a policy
• Declare war on a nation (3 nations, 3 points)
• Attack any nation or primitive peoples (PC or NPC) in a region where you have an established TF or colony
• Acting against a faction in your nation
• Start a project
• Buy troops or ships when not under attack
• Change state religion (costs 2)
• Set up espionage in a foreign nation
• Launch an exploration expedition
• Establish a trading fort
• Start a Colony
• Convert wealth to gold (costs 2)
Things that do not cost IP, but may need gold:
• Any spending internally not mentioned above
• Establish a merchant enclave in a foreign nation via an overland route.
• Borrowing money or paying debts
• Supporting factions in your nation or other nations
• Defending if attacked
Now, if you choose to enact something that requires IP and you do not have them to spend, then you may do so, but you can expect unintended consequences. As the game progresses, the items on the above lists may change or move from one list to the other.