European Rift: Macron and Meloni Sidetrack Merz’s Plan to Use Russian Assets

Tensions at the heart of the European Union have reached a boiling point following the December 18–19, 2025 summit, with reports suggesting a significant breakdown in the Franco-German alliance. According to the Financial Times, President Emmanuel Macron has been accused of "betraying" German Chancellor Friedrich Merz by withdrawing support for a high-stakes plan to leverage €210 billion in frozen Russian assets for Ukraine.

While Merz pushed for the "reparations loan" as a primary strategy, Macron—citing legal risks and France’s own mounting debt—joined forces with Italy’s Giorgia Meloni to stall the initiative. Meloni reportedly acted as the primary strategist in the room, amplifying Belgian concerns over financial liability to effectively kill the proposal. This move forced the EU to pivot to "Plan B": a €90 billion loan backed by the EU budget instead of Russian wealth, a decision that has left Berlin’s new leadership feeling sidelined by Paris and Rome.