Of the debts owed by Moscow to foreign banks, German banks hold more than 40 percent. Finance capital in Germany is thus very vulnerable to the political instability in Russia. The German government took part in the assault on Yugoslavia this spring on equal terms with other NATO members in Europe, and is now part of the occupation force in Kosova. Germany's rulers, now seated in Berlin, are shifting their political focus to the east. They have taken the lead in supporting early membership in the European Union for Poland, Hungary, and the Czech Republic and they are playing a leading role financially in the Balkans.
Turkey is much more the focus of German diplomacy today.
The German rulers are preparing for a post-Yeltsin era in Russia by cultivating closer ties with his rivals, such as Moscow mayor Yuri Luzhkov. These moves by the rulers in Germany are putting a strain on its relations with other member states of the European Union, especially France. For example, the German government, which pays five times as much to finance reunification as its net contribution to the European Union, is engaged in a constant quarrel within the EU, arguing that it pays too much. The German rulers' interests are increasingly diverging with Paris on questions such as enlargement of the EU, subsidies to farmers, and military policy. The reunification of Germany has not unified Europe but instead provoked increasing divisions within the European Union.