I can recommend http://hetzner.de/en for root servers in Germany. For example the EQ-4 package (for €49 per month):
* Intel Core i7-920 Quad-Core with Hyper-Threading
* 8 GB DDR3 RAM
* 2 x 750 GB SATA-II HDD (Software-RAID 1)
* 5 TB transfer; €6,90 for an additional TB
* 100 GB backup space for free, nice control interface (incl. reboot), NS control, good support