While a reunified Germany would scare the Soviet Union, there are numerous reasons to believe an acceptable solution could be worked out.
In real life the Soviets allowed the Germany's to reunite and NATO to expand. They weren't happy with it but it wasn't worth risking nuclear war to prevent. The Soviet leadership knows that both the war in China and in Europe are going very poorly. Making a deal with NATO so as to concentrate on China could be seen as a good option.
I can see the Soviet Union (and France) demanding some concessions.
1) Germany can reunify and remain in NATO but it's current borders must be retained and further "reunification" renounced.
2) Germany shall at no time acquire nuclear weapons.
3) No German troops shall remain in Poland for an extended period of time.
4) US, British and Canadian forces can remain in Western Poland so long as Soviet troops remain in Eastern Poland. A withdrawal of Soviet forces must be met by a withdrawal of NATO forces.
5) When all foreign forces withdraw from Poland, Poland will be allowed to rearm but will remain a neutral state outside of both NATO and the Warsaw Pact.
Given what occurred in OTL I'm unclear as to why the Twilight:2000 Soviet Union would become so reluctant to find a negotiated way out of a losing situation. The Germany of 1996 was not the Germany of 1941.
Benjamin
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