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I noticed that there don't seem to be any restrictions on stacking between allies. E.g., Germany and A-H can stack together. Are there any penalties for doing this? Any restrictions at all?

Also, as an experiment, I activated an A-H headquarters, and it seems that they can activate German units. Is there any restriction on this?

I haven't tried the full range of possibilities here, such as using A-H headquarters on the Western front, etc., but it seems like there should be some sort of downside or restriction to: 1) multinational stacks, 2) activation of allied units and 3) putting units in allied territory.

I think the only restriction is on initial setup which has to be in home country.

Right, I didn't allow HQs to activate other nationalities at first but then I allowed them to activate minors and then I allowed German HQs to activate Austrians and finally I just allowed it altogether. There was a small penalty when units of different nationalities attacked the same hex but I honestly can't recall if that stayed in or whether it was removed along with the HQ restrictions. I will have to check that sometime today and get back to you.

I checked and there still is a penalty when units of different nations attack or defend together. The penalty is to their combat strength (25%), readiness and quality etc are not affected.

ORIGINAL: FrankHunter

I checked and there still is a penalty when units of different nations attack or defend together. The penalty is to their combat strength (25%), readiness and quality etc are not affected.

This is interesting. Is this mentioned in the rules at all?

ORIGINAL: Lascar
This is interesting. Is this mentioned in the rules at all?

No it's not.

But if we can keep Frank here and talking long enough, we might just find out all the things we need to know to play the game. I'm looking forward to give it another go with the new patch.

The AI seems to really love this approach....for some reason. The AI has the Germans stacked with the Austrians in Serbia...and just for multi-culturalism the Bulgarians and Turks are stacked together on the other side of the country. The Austrians have helpfully sent a corps to attack Riga and the Austrians are stacked with the Germans fending off a French drive on Stuttgart.

So, just for clarity, is the 25% penalty applied for defenders any time a hex is attacked that has two or more nationalities in it?
 
And for attackers, is the 25% penalty applied if any units in the hex attacked are from two or more nationalities, or if the hexes from which the attack originated had two or more nationalities?
 
Thanks!

So, just for clarity, is the 25% penalty applied for defenders any time a hex is attacked that has two or more nationalities in it?

Yes

And for attackers, is the 25% penalty applied if any units in the hex attacked are from two or more nationalities, or if the hexes from which the attack originated had two or more nationalities?

The first one.