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Core Viewpoint - The ongoing Russia-Ukraine conflict has led to a significant rift between Germany and France, undermining the EU's unity and complicating financial strategies regarding frozen Russian assets and trade agreements [1][4][8] Group 1: Germany's Position - Germany's new Chancellor Merz proposed to utilize 17 trillion RMB (approximately 2.1 billion euros) of frozen Russian assets to support Ukraine, but faced unexpected opposition from France [1] - Merz has adopted a hardline stance, advocating for aggressive defense and infrastructure spending, aiming to position Germany as a leader in EU decision-making [3][4] - The failure to secure consensus on the handling of Russian assets and trade agreements has left Merz in a difficult position, highlighting the fragility of EU unity [6] Group 2: France's Position - French President Macron's opposition to the asset proposal reflects his concerns over legal risks and domestic financial pressures, as France faces high debt and political instability [1][3] - Macron's cautious approach contrasts sharply with Germany's aggressive policies, indicating a shift in the traditional Franco-German partnership dynamics [4][8] - The alignment of France with Italy against the proposed free trade agreement with the Southern Common Market underscores the challenges in reaching consensus within the EU [4][6] Group 3: EU Dynamics - The discord between Germany and France has resulted in a lack of progress on key issues, such as the long-stalled free trade agreement, which has been under negotiation for nearly 26 years [4] - The internal divisions within the EU, exacerbated by financial constraints and differing national interests, threaten the bloc's ability to respond effectively to external challenges [8] - The contrasting strategies of Germany and France may lead to increased internal conflict within the EU, complicating future efforts to achieve cohesion and collective action [8]