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    Real Strategy Requires Cunning

Martin_Mortyry

A pretentious asshole who thinks he knows history
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As of now it is impossible to form German tags such as Hannover, Westphalia or Prussia without being an elector or leaving the Empire. That's quite sad, really. The problem lies in the fact that tag change grants you a kingdom rank, which is not achievable for a common member of the HRE.

The problem could be resolved pretty easily - by an event. Once the tag is formed by the country which isn't electorate, it will receive the event asking what the tag wants to do now:
  1. Keep the duchy rank and stay in the Empire
  2. Leave the Empire and become a kingdom
  3. Request the electorate - if there are too few electors in the HRE, the emperor would likely accept, but if the elector pool is already full, the emperor would have to decide who should lose their position or deny the request. The tag would rank up to the kingdom if the request was accepted. In case of denial the formable would get another event in which it could either accept its fate or leave the Empire.
If the tag decided to leave the Empire it would get a huge relations hit with the emperor and malus to its reputation for a few years. In response, the emperor could get Casus Belli on the quitter to bring him back to HRE.
 
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The dragon of bhutan

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I didn't even know you would be removed from the HRE. Germany should just dismantle the empire, but these smaller states could easily remain.
Also if the demoted elector is a kingdom, he would be removed from the empire by eu4's core system, right?