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Yes, it does invade Europe. The AI in 0.3.2 however is basically the Doomsday AI, adjusted to go along with the alterations in CORE (we did improve it somewhat). As such it still needs further improvement. That is being worked on at this very moment, and scheduled to be included into the next release (0.40). It will probably take a couple of months before we're able to release it, I reckon. As Lothos was kind enough to share his TRP AI with us that should be a major improvement.