Before 1.30, merchant republics had a limit of 20 state provinces and had republican tradition penalty after that. Since 1.30 this limit was replaced with +25% state governing cost. However, if merchant republic stays withing 20 provinces and develops them, it can easily hit governing capacity limit, and because of 25% penalty it would come quicker than with other government types.
I think this is somewhat unfair, as merchant republics should be encouraging tall play instead of penalizing it. At least, capital state should not consume government capacity (now it costs 25% of development because of aforementioned +25% penalty, while for other governments it's free).
The same considerations apply to Eastern Plutocracies which use all mechanics and bonuses/penalties of merchant republics since 1.31.
I think this is somewhat unfair, as merchant republics should be encouraging tall play instead of penalizing it. At least, capital state should not consume government capacity (now it costs 25% of development because of aforementioned +25% penalty, while for other governments it's free).
The same considerations apply to Eastern Plutocracies which use all mechanics and bonuses/penalties of merchant republics since 1.31.