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.

The future of Ukraine hangs in the balance as U.S. officials head to Saudi Arabia to begin direct negotiations with Moscow over ending the war, leaving Kyiv and its European allies scrambling to come up with a strategy for their own security.

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,

The future of Ukraine hangs in the balance as U.S. officials head to Saudi Arabia to begin direct negotiations with Moscow over ending the war, leaving Kyiv and its European allies scrambling to come up with a strategy for their own security.

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.

The future of Ukraine hangs in the balance as U.S. officials head to Saudi Arabia to begin direct negotiations with Moscow over ending the war, leaving Kyiv and its European allies scrambling to come up with a strategy for their own security.

The Ukrainian president and US vice-president reiterate their hopes for enduring peace in the Ukraine war while meeting in Munich.

The future of Ukraine hangs in the balance as U.S. officials head to Saudi Arabia to begin direct negotiations with Moscow over ending the war, leaving Kyiv and its European allies scrambling to come up with a strategy for their own security.

Leadership from Berlin will be essential to safeguard Europe against Russia and ward off election interference from America.