Not quite. You can 'upgrade' to most nations that exist, regardless of who you are. Some are so-called endgame tags that cannot further evolve (e.g., Great Britain, Spain, Ming). But for most others, you just need to fulfill some basic condition and can switch you tag. For example, hold the correct territory or have the majority of your 'heartland' be of a certain culture (which you can change with some investment). That makes it easy to switch from England to Great Britain (basically, you just need to hold Ireland and Scotland), but harder for England to form Tibet or the Ottomans. Yet, some achievements require and players that min-max will do some of this kind of switching. Especially Tibet was popular in EU4 for some time, because it was the easiest way to go from a monarchy or theocracy to a horde (which is good for conquering, while Tibet itself is relatively easy to conquer and form). You are always asked if you want to keep your traditions though, but it is rarely a good idea. In any case, the main point might be: you do it on purpose and in your own time, not forced.Thanks. I have not played those games a lot so correct me if I am wrong. I think the way it works is that you basically have quests and if you complete the quests, you get to upgrade your nation in a historically relevant way. So for example, if you conquer these provinces, switch to this government and adopt this religious stance, you can upgrade your original nation to the Holy Roman Empire. You are still playing as your team, just upgaded in a way that makes some historical sense.
(And the HRE would be a perfect example for something different. You need to go through a lot of hassle to become the HRE, including getting elected emperor a few times – but I think in principle, every nation in the world can become elected if they have the right state religion).
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