While rebalancing due to valuation extremes is a key driving force, the prospect of higher defence spending in Europe has added a major tailwind - with the outcome of Germany's elections also likely to decide whether a new government in Berlin will have the two-thirds parliamentary support needed to loosen the so-called 'debt brake' embedded in its constitution.

Advertisement Article continues below this ad Here are five reasons for Germany's ongoing economic slump: Moscow's decision to cut off natural gas supplies to Germany in the wake of Russia's invasion of Ukraine dealt a severe blow.

Vladimir Solovyov, a Russian state TV host and key ally to Russian President Vladimir Putin, said Moscow could "erase" Germany "off the face of the earth" during a recent broadcast. Newsweek reached out to the German embassy for comment via email on Thursday.

Moscow's decision to cut off natural gas supplies to Germany in the wake of Russia's invasion of Ukraine dealt a severe blow. For years, Germany’s business model was based on cheap energy fueling production of industrial goods for export.

Vance criticises Europe on free speech and migration Germany's Pistorius calls Vance's comments 'unacceptable' Clash shows divisions between Washington and Europe Talks on Ukraine eclipsed by argument MUNICH,

But the nativist AfD, which wants to stop arming Ukraine and restore Germany's energy relationship with Russia even as Moscow fights a war of conquest against its western neighbour, may have other ways of throwing a spanner in the works.

Should an AfD-led Germany withdraw from NATO, the alliance would surely collapse, as would an EU without Germany. Instead, a German-Russian alliance would fill Europe’s security vacuum and dominate the continent.

The once poorly equipped German military is rising to a new challenge: Protecting the Baltic from Vladimir Putin’s ‘hybrid warfare’

PRESIDENT Donald Trump has denied claims that he will visit Vladimir Putin in Moscow for the May 9 victory day parade. It comes after French outlet Le Point claimed, citing Russian sources, that

Many pieces of information provided by Russian media or government representatives are elements of propaganda. Such reports are part of the information warfare conducted by the Russian Federation.

Moscow’s decision to cut off natural gas supplies to Germany in the wake of Russia’s invasion of Ukraine dealt a severe blow. For years, Germany’s business model was based on cheap energy fueling production of industrial goods for export. In 2011 ...

Ukrainian President Volodymyr Zelenskyy warned on Saturday that Russian President Vladimir Putin aims to use US President Donald Trump as a “prop” at Moscow’s May 9 military parade, which commemorates the Soviet victory over Nazi Germany in World War II.