The Flame War
After America did not get involved in WWII, this powerful group swept over most of Europe as a mad, genocidal wave. Due to the efforts of Project Valkyrie and other such movements, the more monstrous acts of this party were quelled around the same time it’s original leader was assassinated. The Damn Nazis now are far less destructive, but totalitarian and oppressive none the less. Their main pass-time is national guilt.
The current Fuhrer is a woman named Blau Adler, whom has opened the borders of Germany for (carefully monitored) tourism and travel, and has doubled up on defense spending. She is a stern, tough, but polite old woman who seeks to maintain order and civility in the countries her ancestors have conquered.
Life under the rule of the Damn Nazis is considered one of the safest, but most uncomfortable ways of life on the planet. Residents of a German occupied country are akin to very well treated prisoners. Their jobs, housing arrangements, property, and money are all regulated by the state, but before curfew and after work, they are allowed to roam, intermingle, and unwind however they see fit, as long as it’s not destructive.
In terms of Military power, the Damn Nazis have the best defensive capabilities, and arguably the best air-force. They are only expanding into Russia in order to keep the war as far from their borders as possible.