I wonder on several things in post
That ESA runs double tracked on USA and Russian space program
French CNES makes sense
I guess there several european socialist government support russia and there space program
But were is money coming from EU ?
OTL there was almost insufficient money for ESA part of ISS, do Re-reunification of two Germany's in EU 1990s
I guess that CNES never went for Hermes in TL and used that money for Russians
And parts had to be buy in Germany to complete FGB and DOS-8 and Pay by NASA
Also they launch Dos-8 without backup and no insurance
And with no Russian part on Enterprise station
would it make more sense if Russian get the Chinese on board ?
as partner and financier for MIR-II while china build there manned spacecraft and supply craft for MIR-II !
My 2 eurocents on this.
ITTL, France basically paid for the Mir-1 contribution (completion of Priroda) itself, with minimal ESA support. IOTL they also flew a number of experiments on Priroda, and the necessary delta funding (not that much, considering late- and immediate post-Soviet economics) could be explained by an earlier end to Hermes funding. I wasn't able to find exact figures from OTL, but it seems a safe bet that finishing an already half-build Soviet module would cost a lot less than another 3-4 years of Hermes.
For Mir-2, the discussions are coming in the late '90s, when Europe is midway through a period of prolonged economic growth. The German economy resumed steady growth from about 1994-1998, so the cost of reunification should be less of a hot-topic. Also on the cost, the Mir-2 involvement here is a bargain. The cost of completing Spektre is less than the all-new FBG that IOTL became Zarya. As for the ATV-derived module, ESA are already committed to developing ATV for Space Station Enterprise, using a lot of the same hardware already developed for Kepler-L, so the additional cost of modifying an ATV into the Mir-2 module is pretty low, especially if some of the necessary hardware (e.g. Russian docking port) is provided as barter. It would certainly be less than the cost of developing Kepler and Ariane 5, which are now coming off the books as they move into operations.
ESA has undoubtadly spent more ITTL than IOTL in supporting Kepler. Again, Hermes' early death probably offset this substantially, but certainly not entirely, and on the other side of the ledger the cost of station operations has moved forward around a decade compared to OTL, plus supporting Minerva missions. If we accept the budgets already agreed in the early '90s, this higher level has probably become normalised by now, and is not really that big in the grand scheme of things. Not going ahead with the Galileo stanav system would probably cover the additional costs from 2000 onwards, after it had done its main job and forced the US to switch off GPS Selective Availability (but that's a whole other rant
).
[EDIT: Another thought on Galileo: IOTL, Italy was a major contributor to the programme, which is why they got one of the two Galileo Control Centres in Fucino. ITTL Italian industry is well served producing Kepler capsules, so they wouldn't have as much incentive to put up funds for Galileo. So it wouldn't surprise me if the programme gets cancelled ITTL.]
In general in Europe, the economic dip c.2003 would come after most of the Mir-2 related development funding has been spent, with the major European economies apart from Germany riding pretty high around 1999-2000. The budget might come into question as the German economy slows from 1999 onwards, and as the rest dip in 2003, but by then the programme would have advanced enough that pulling out would be diplomatically difficult, and remember, this is before the 2008 Russian invasion of Georgia really soured East-West relations again (though of course NATO and EU expansion is still pissing off the Russians), assuming that tracks to OTL, so keeping Russia close is still an important foreign policy objective.
I don't think China in 1999 is a credible space station partner. At that point, their Shenzhou programme has only just launched, and even today IOTL can barely be described as operational given its low flight rate. OTOH, ESA has their own crewed spacecraft and a large supply vehicle, as well as being able to contribute a valuable station module with siginificant power generating and reboost capability. Russia need a partner to stay in the crewed spaceflight game, and if the US aren't interested, ESA is the only viable option.