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.

"We, as an independent country, simply will not be able to accept any agreements without us," Zelenskyy told reporters as he visited a nuclear plant on his way to the Munich Security Conference, where he plans to meet Friday with U.

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.

Germany's defense minister criticized President Donald Trump for what he called "regrettable" concessions to Moscow, after the president unilaterally announced an immediate start to direct peace talks with President Vladimir Putin to end the Kremlin's war on Ukraine.

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 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 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.

Germany's election winner Friedrich Merz warned the US against abandoning allies and urged Europe to strengthen its defence, calling it "five minutes to midnight". His remarks reflected growing transatlantic tensions amid fears Trump could cut a deal with Russia over Ukraine,