European markets have been trailing significantly behind the US rally since summer, leaving investors itching for a catalyst. All eyes are now on Germany — the EU's economic heavyweight — and whether a major fiscal push in 2026 can finally shift the momentum.

Here's the thing: talk is cheap. The real test comes down to execution. Can German policymakers actually deliver the spending they're promising? Will it be enough to reignite growth across the eurozone and make Europe competitive again?

For risk-on asset traders monitoring global macro flows, this is worth watching closely. If Germany's economic stimulus works, it could unlock significant capital reallocation away from US-dominated markets. If it falls flat, expect European assets to remain under pressure heading into 2026.