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Types

The degree and nature of state backing for denomination or creed designated as a state religion can vary. It can range from mere endorsement (with or without financial support) with freedom for other faiths to practice, to prohibiting any competing religious body from operating and to persecuting the followers of other sects. In Europe, competition between Catholic and Protestant denominations for state sponsorship in the 16th century evolved the principle Cuius regio, eius religio (states follow the religion of the ruler) embodied in the text of the treaty that marked the Peace of Augsburg in 1555. In England, Henry VIII broke with Rome in 1534, being declared the Supreme Head of the Church of England, the official religion of England continued to be "Catholicism without the Pope" until after his death in 1547.

In some cases, an administrative region may sponsor and fund a set of religious denominations; such is the case in Alsace-Moselle in France under its local law, following the pre-1905 French concordatory legal system and patterns in Germany.