The allies of WWII agreed that after the war, Germany must never again be allowed to become a threat. It was planned to break Germany up into several different states, demilitarize and deindustrialize them while encouraging the development of national identities within the new states to discourage reunification.
But like most things, it did not go exactly to plan. German industry was too valuable for the dream of Germany becoming quiet little agrarian nations to come true, and the threat of the USSR meant that German defence forces had to become serious militaries capable of not only national defence but supporting the allies in the event of a Soviet invasion.
Despite the hopes of the German Union Party and several banned National Socialist groups, Germany has remained divided, with 11 nations being created from pre-Anschluss Germany.
The Rhenish Republic and Saar Protectorate are close allies of France, with more people from these nations in the French military than in their own countries, indeed so many join up that France had to create a separate Legion for Germans.
Far to the east is Lusatia, a nation created for the Slavic Sorbs, supported by Poland and Czechoslovakia. Despite expulsions of Germans and financial incentives for Sorbs to have many children around 60% of Lusatia's population is still German, though most are proud to be a part of Lusatia and over 80% can speak a Sorbian language.
Hanover has a close relationship with the United Kingdom, which entered into a personal union with the UK once again. Willimshaven has become a major Royal Navy base and large numbers of British troops are stationed in Hanover and the King's German Legion was recreated to recruite Hanoverians, who's reputation for toughness and loyalty to their adopted nation is rivaled only by the Ghurkhas and Fijians.
In addition to these new states, much of Germany was annexed by other nations, Poland, Denmark and the Netherlands took the lion's share while Heligoland was returned to the United Kingdom.
With the fall of Nazi Germany, Europe lost the enemy that had united it and factions started to turn against each other. In Greece a bloody civil war raged, eventually being won by the National Army thanks to American and British support, and Greek antipathy for the communist's Bulgarian and Albanian allies.
In the Baltic things were more complex. The Western Allies and covertly, Finland and Sweden, aided the Forest Brothers and the governments in exile in their fight against the USSR, but by 1949 only Estonia had managed to hold any territory, controlling the West Estonian archipelago. Despite several attempts the Soviet Union had not managed to retake the islands and so agreed to call a truce.
The Estonian government was bankrupt, it's islands ravaged by years of Soviet bombing and shelling and it's islands had fairly small populations and weak economies.
To try and recover the Estonian government requested annexation by Finland so it could become an autonomous region, along the lines of the Åland Islands with the right to secede if Estonia were to be liberated. As Finland had several non-aggression treaties with the USSR, the Soviets supported this move and on January 3rd 1950, Free Estonia united with Finland.
To start with after WWII the USSR had quite a significant sphere of influence in the Balkans and surrounding area, however this has been eroded with time.
Yugoslavia from the start was controlled by it's own communists, not those picked by the USSR, and has since drifted towards the rest of Europe. While certainly still socialist they haven't listened to the Kremlin in a long time and relations with Western Europe are close and cooperative.
Albania, despite being allowed to keep large areas of land seized from Yugoslavia, drifted away from both Yugoslavia and the USSR, and has effectively cut it self off from the rest of the world, becoming something of an autarky, only reaching out to different nations when it really needs something. The main export of Albania is electricity from it's 5 nuclear power plants, which provide far more power than the nation needs.
Bulgaria was the only nation to remain loyal to the USSR, and in 1956 joined the USSR as the 16th Republic, it's southerly position and access to the Aegean makes Bulgaria popular with tourists and military strategists alike.
Romania showed the most dramatic break of any of the nations in the USSR's shadow, with a conservative, bordering on fascist government taking over. Romania is exceedingly hostile to the USSR, and has vowed to one day retake the lands taken from it during WWII, though given what a great tool the promise of reunification is for controlling it's own people, and fact that Romania has had at least twenty nuclear weapons for the past decade indicates it's not all that serious about trying.
In the heart of the oppressive Romanian Republic is a enclave of freedom and democracy, the Hungarian Autonomous Region. The Region's autonomy is guaranteed because of Hungarian aid to Romania, and Hungary supporting Romania internationally. In effect, Romania has been holding the Székelys hostage for the past 60 years and shows no sign of stopping.
Despite being at opposite ends of the political spectrum, Romania and Albania maintain good relations, as international pariahs they need any friends they can get. In 1998 Romania created the Community of Free Nations, where various Rogue and Pariah states, including Aceh, Albania, Bioko, Nariño, Nicaragua, Romania, Somalia and Tamil Eelam can co-operate and trade together.